ex99-1.htm

Charleston, West Virginia – City Holding Company, “the Company” (NASDAQ:CHCO), a $2.6 billion bank holding company headquartered in Charleston, today reported financial results for the year ended December 31, 2010. The Company’s earnings remained strong while loans and deposits continued to grow as evidenced by a $72.6 million (4.1%) increase in the Company’s loan portfolio and a $23.5 million (1.1 %) increase in its average depository base from the quarter ended December 31, 2009. This growth, bolstered by a continuation of solid credit quality trends, helped partially offset the impact of lower service fee income and decreased interest income from interest rate floors.

Charles Hageboeck, President and Chief Executive Officer stated “While our financial results are down slightly from 2009, our results compare favorably to our peers considering the many headwinds and challenges our industry encountered again this year. Although the economy is still in a state of flux, City’s asset quality remains strong with stable and relatively low levels of past due loans. Our nonperforming assets declined $4.8 million, or 19%, from December 31, 2009 and net charge-offs for the year were $3.2 million lower than 2009.”

“While City was able to successfully meet these headwinds, changes mandated in the Electronic Funds Transfer Act (“Regulation E”) and a general decline in consumer spending adversely impacted our service fee revenues. While our customers responded to “Regulation E” as we had anticipated (the majority of customers who utilized these services elected to “opt in” and the majority of those who had not used these services did not), the regulatory change and new processes we implemented to support it, combined with less consumer spending, reduced our service fee income by 11% compared to 2009. City also experienced additional credit-related net impairment losses during 2010, primarily in our portfolio of community bank equity positions.”

“In spite of these many challenges, City’s consistent history of solid earnings have enabled the Company to continue our strong quarterly dividend of 34 cents per share while many of our peers eliminated or significantly reduced shareholders dividends. City’s strong capital, liquidity, and stable core-deposits provide us with the ability to consider acquisition opportunities to grow the Company. City remains one of the most profitable and well capitalized publicly traded banks in the U.S. and we look forward to continuing to provide our shareholders the value they have come to expect and our customers the services they need,” Hageboeck concluded.

The Company’s tax equivalent net interest income decreased $1.0 million, or 1.1%, from $96.3 million in 2009 to $95.3 million in 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 2010, the Company recognized $4.5 million of interest income compared to $9.7 million of interest income recognized in 2009 from the interest rate floors. This decline was partially offset by the decrease in interest expense exceeding the decline in interest income from 2009 resulting in an increase in tax equivalent net interest income of approximately $3.1 million. In addition, the Company recognized $1.1 million of additional interest income related to three of the six pools of previously securitized loans that had a negative carrying value due to actual recoveries that exceeded estimates and discount accretion previously recognized. As a result, the carrying value for these three pools is $0 and future cash receipts related to these three pools will be recognized as interest income as received. The Company’s reported net interest margin decreased from 4.18% for the year ended December 31, 2009 to 4.06% for the year ended December 31, 2010.

million of interest income compared to $1.9 million of interest income recognized in the fourth quarter of 2009 from the interest rate floors. This decline was partially offset by the decrease in interest expense exceeding the decline in interest income from the fourth quarter of 2009 resulting in an increase in tax equivalent net interest income of approximately $0.5 million. The Company’s reported net interest margin decreased from 4.07% for the quarter ended December 31, 2009 to 3.92% for the quarter ended December 31, 2010.

The Company’s ratio of non-performing assets to total loans and other real estate owned decreased from 1.31% at September 30, 2010 to 1.12% at December 31, 2010 and improved 31 basis points from December 31, 2009. Past due loans increased modestly from $7.9 million at September 30, 2010 to $8.7 million or 0.47% of total loans outstanding at December 31, 2010 and increased $0.2 million from December 31, 2009. Past due commercial, financial, and agriculture loans were $0.8 million or 0.10% of loans outstanding at December 31, 2010; past due residential real estate loans were $4.8 million or 0.78% of loans outstanding at December 31, 2010; and past due home equity loans were $2.3 million or 0.55% of loans outstanding at December 31, 2010.

The Company recognized net charge-offs of $2.5 million for the fourth quarter of 2010. Net charge-offs on depository accounts and residential loans were $1.5 million and $0.8 million, respectively, for the fourth quarter. Depository account charge-offs increased in the fourth quarter of 2010 due to a specific, nonrecurring depository overdraft loss during the quarter and was appropriately considered in the Company's normal process for estimating the allowance for loan losses and recognizing charge-offs. While charge-offs on depository accounts are appropriately taken against the Allowance for Loan Losses (“ALLL”), the revenue associated with depository accounts is reflected in service charges.

As a result of the Company’s quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $2.3 million in the fourth quarter of 2010 and $7.1 million for the year ended December 31, 2010 compared to $1.5 million and $7.0 million for the comparable periods in 2009. The provision for loan losses recorded during 2010 reflects difficulties encountered by certain commercial borrowers of the Company during the year, the downgrade of their related credits and management’s assessment of the impact of these difficulties on the ultimate collectability of the loans. 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.

During 2010, the Company recorded $6.1 million of credit-related net investment impairment losses, including $1.2 million in the fourth quarter. The charges deemed to be other than temporary were related to pooled bank trust preferreds ($0.1 million credit-related net impairment losses in the fourth quarter and a $1.8 million credit-related net impairment losses for the full year) with remaining book value of $7.8 million at December 31, 2010; single issuer bank trust preferreds ($0.7 million credit-related net impairment losses for the full year) with remaining book value of $1.2 at December 31, 2010; and community bank and bank holding company equity positions ($1.1 million credit-related net impairment losses in the fourth quarter and $3.6 million for the full year) with remaining book value of $3.6 million at December 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 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 impairment charges of $1.8 million and $0.7 million on the pooled bank trust preferred securities and single issuer bank trust preferred securities, respectively, were appropriate for the year ended December 31, 2010. During the year ended December 31, 2010, the Company recognized $3.6 million of credit-related impairment charges on the Company’s equity positions due to trends of poor financial performance over the last several quarters and the length of time and the extent to which the market values of these securities have been below the Company’s cost basis in these positions. As a result of these factors, the Company does not expect the market value of these securities to recover in the near future. These losses were partially offset by realized investment gains of $1.4 million as the Company sold certain single issuer trust preferred securities with a remaining book value of $75.3 million during the year ended December 31, 2010.

Exclusive of net other-than-temporary investment impairment losses and realized investment security gains/(losses), non-interest income decreased $4.5 million to $53.6 million for the year ended December 31, 2010 as compared to $58.1 million for the year ended December 31, 2009. Service charges from depository accounts decreased $5.0 million, or 11.1%, to $40.0 million for the year ended December 31, 2010. This decline is primarily attributable to the Company’s compliance with new federal rules under the Electronic Funds Transfer Act, also known as Regulation E. The changes to this regulation affect how banks can provide certain overdraft services, and were effective July 1, 2010 for new customers and August 15, 2010 for existing accounts. This decrease was partially offset by an increase of $0.4 million, or 18.1%, in trust and investment management fee income from $2.4 million for the year ended December 31, 2009 compared to $2.8 million for the year ended December 31, 2010.

Exclusive of other than temporary investment impairment losses and investment losses, total non-interest income decreased $1.2 million to $13.1 million for the fourth quarter of 2010 as compared to the fourth quarter of 2009. Service charges from depository accounts decreased $2.0 million due to the changes from complying with Regulation E and a general decline in consumer spending. This decrease was partially offset by increases in insurance commission revenues of $0.4 million, trust and investment management fee income of $0.2 million, and other income of $0.2 million from the fourth quarter of 2009.

Non-interest expenses increased $1.5 million from $77.2 million for the year ended December 31, 2009 to $78.7 million for the year ended December 31, 2010. Insurance and regulatory expense increased $1.5 million, or 44.1%, from the year ended December 31, 2009 primarily as a result of the Company fully utilizing the balance of its FDIC credits during 2009 and increases in the general assessment rates during 2010, which increased the Company’s FDIC insurance expense from $2.2 for the year ended December 31, 2009 to $3.7 million for the year ended December 31, 2010. In addition, repossessed asset losses increased $0.8 million and salaries and employee benefits increased $0.7 million, or 1.9%, from the year ended December 31, 2009. The repossessed asset losses were primarily due to the write down of a foreclosed property located in the eastern panhandle of West Virginia reflecting continued weakness in property values in this market. As a result of this write down, this foreclosed property is now valued at approximately one-half of its original cost. Partially offsetting these increases were decreases in other expenses of $0.7 million, or 7.9%, and bankcard expenses of $0.6 million, or 24.9%. Other expenses decreased primarily due to a decrease of $0.6 million of amortization expenses associated with low income housing tax credits.

Total average depository balances decreased $15.0 million, or 0.7%, from the quarter ended September 30, 2010 to the quarter ended December 31, 2010. This decline was primarily due to a decrease in time deposits of $23.6 million that was partially offset by increases in interest bearing demand deposits and noninterest bearing demand deposits of $4.8 million and $3.1 million, respectively. As compared to the quarter ended December 31, 2009, total average depository balances have increased $23.5 million, or 1.1%, for the quarter ended December 31, 2010. This increase was due to increased interest bearing deposits ($31.6 million), noninterest bearing deposits ($28.6 million), and savings deposits ($13.7 million) that were partially offset by a decrease in time deposits ($50.4 million).

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 85.9% and the loan to asset ratio was 70.7% at December 31, 2010. The Company maintained investment securities totaling 17.2% of assets as of this date. Further, the Company’s deposit mix is weighted heavily toward checking and saving accounts that fund 46.3% of assets at December 31, 2010. Time deposits fund 36.0% of assets at December 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 was 10.0% at December 31, 2010 compared with a tangible equity ratio of 9.8% at December 31, 2009. At December 31, 2010, City National Bank’s Leverage Ratio is 9.62%, its Tier I Capital ratio is 12.67%, and its Total Risk-Based Capital ratio is 13.61%. These preliminary regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

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; (15) the effects of the Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) recently adopted by the United States Congress. Forward-looking statements made herein reflect management’s expectations as of the date such statements are made. 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 December 31,						Percent
	2010			2009			Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	23,203		$	23,817			(2.58	)%
Net Income available to common shareholders		9,908			11,078			(10.56	)%
Earnings per Basic Share		0.64			0.70			(8.71	)%
Earnings per Diluted Share		0.64			0.70			(8.78	)%


Key Ratios (percent):
Return on Average Assets		1.49	%		1.69	%		(11.53	)%
Return on Average Tangible Equity		14.99	%		17.71	%		(15.38	)%
Net Interest Margin		3.92	%		4.07	%		(3.57	)%
Efficiency Ratio		50.69	%		50.60	%		0.19	%
Average Shareholders' Equity to Average Assets		12.09	%		11.70	%		3.37	%

Consolidated Risk Based Capital Ratios (a):
Tier I		13.88	%		13.63	%		1.83	%
Total		14.81	%		14.60	%		1.44	%

Tangible Equity to Tangible Assets		10.01	%		9.82	%		1.93	%


Common Stock Data:
Cash Dividends Declared per Share	$	0.34		$	0.34			-
Book Value per Share		20.31			19.45			4.42	%
Tangible Book Value per Share		16.66			15.86			5.04	%
Market Value per Share:
High		38.03			33.29			14.24	%
Low		30.37			28.96			4.87	%
End of Period		36.23			31.25			15.94	%

Price/Earnings Ratio (b)		14.20			11.18			27.00	%
	Twelve Months Ended December 31,						Percent
		2010			2009		Change

Earnings ($000s, except per share data):
Net Interest Income (FTE)	$	95,278		$	96,338			(1.10	)%
Net Income available to common shareholders		38,960			42,645			(8.64	)%
Earnings per Basic Share		2.48			2.69			(7.57	)%
Earnings per Diluted Share		2.47			2.68			(7.61	)%


Key Ratios (percent):
Return on Average Assets		1.47	%		1.63	%		(10.22	)%
Return on Average Tangible Equity		15.02	%		17.95	%		(16.35	)%
Net Interest Margin		4.06	%		4.18	%		(2.96	)%
Efficiency Ratio		52.93	%		49.99	%		5.89	%
Average Shareholders' Equity to Average Assets		11.91	%		11.29	%		5.43	%


Common Stock Data:
Cash Dividends Declared per Share	$	1.36		$	1.36			-
Market Value per Share:
High		38.03			34.34			10.75	%
Low		26.87			20.88			28.69	%

Price/Earnings Ratio (b)		14.59			11.63			25.42	%


(a) December 31, 2010 risk-based capital ratios are estimated
(b) December 31, 2010 price/earnings ratio computed based on 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			19.37		20.88		34.34
2010		19.71		19.95		20.31			20.31		26.87		38.03


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		0.68		0.58			0.64		2.48


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		0.68		0.58			0.64		2.47

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

	Three Months Ended December 31,
	2010			2009

Interest Income
Interest and fees on loans	$	24,124		$	25,746
Interest on investment securities:
Taxable		4,647			5,706
Tax-exempt		454			434
Interest on deposits in depository institutions		-			1
Interest on federal funds sold		16			-
Total Interest Income		29,241			31,887

Interest Expense
Interest on deposits		6,042			8,000
Interest on short-term borrowings		79			134
Interest on long-term debt		162			168
Total Interest Expense		6,283			8,302
Net Interest Income		22,958			23,585
Provision for loan losses		2,343			1,475
Net Interest Income After Provision for Loan Losses		20,615			22,110

Non-Interest Income
Total investment securities impairment losses		(1,932	)		(6,637	)
Noncredit impairment losses recognized in other comprehensive income		713			5,762
Net investment securities impairment losses		(1,219	)		(875	)
Loss on sale of investment securities		(1	)		(562	)
Service charges		9,624			11,628
Insurance commissions		1,503			1,110
Trust and investment management fee income		720			549
Bank owned life insurance		751			753
Other income		527			320
Total Non-Interest Income		11,905			12,923

Non-Interest Expense
Salaries and employee benefits		8,930			8,523
Occupancy and equipment		1,861			1,947
Depreciation		1,138			1,180
Professional fees		502			439
Postage, delivery, and statement mailings		548			573
Advertising		647			830
Telecommunications		428			455
Bankcard expenses		548			570
Insurance and regulatory		1,238			1,014
Office supplies		457			484
Repossessed asset losses, net of expenses		196			321
Other expenses		1,907			2,980
Total Non-Interest Expense		18,400			19,316
Income Before Income Taxes		14,120			15,717
Income tax expense		4,212			4,639
Net Income Available to Common Shareholders	$	9,908		$	11,078


Distributed earnings allocated to common shareholders	$	5,239		$	5,370

Undistributed earnings allocated to common shareholders		4,610			5,697

Net earnings allocated to common shareholders	$	9,849		$	11,068

Average common shares outstanding		15,439			15,838

Effect of dilutive securities:
Employee stock options		69			59

Shares for diluted earnings per share		15,508			15,897

Basic earnings per common share	$	0.64		$	0.70
Diluted earnings per common share	$	0.64		$	0.70

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

	Twelve months ended December 31,
	2010			2009

Interest Income
Interest and fees on loans	$	99,456		$	107,142
Interest on investment securities:
Taxable		20,594			23,200
Tax-exempt		1,837			1,683
Interest on deposits in depository institutions		-			11
Interest on federal funds sold		29			-
Total Interest Income		121,916			132,036

Interest Expense
Interest on deposits		26,608			35,230
Interest on short-term borrowings		362			529
Interest on long-term debt		658			844
Total Interest Expense		27,628			36,603
Net Interest Income		94,288			95,433
Provision for loan losses		7,093			6,994
Net Interest Income After Provision for Loan Losses		87,195			88,439

Non-Interest Income
Total investment securities impairment losses		(9,400	)		(11,100	)
Noncredit impairment losses recognized in other comprehensive income		3,336			5,762
Net investment securities impairment losses		(6,064	)		(5,338	)
Gain (loss) on sale of investment securities		1,397			(826	)
Service charges		40,002			45,013
Insurance commissions		5,490			5,576
Trust and investment management fee income		2,767			2,343
Bank owned life insurance		3,396			3,271
Other income		1,951			1,944
Total Non-Interest Income		48,939			51,983

Non-Interest Expense
Salaries and employee benefits		38,241			37,526
Occupancy and equipment		7,697			7,689
Depreciation		4,675			4,746
Professional fees		1,677			1,505
Postage, delivery, and statement mailings		2,371			2,600
Advertising		3,692			3,503
Telecommunications		1,732			1,865
Bankcard expenses		1,953			2,599
Insurance and regulatory		4,869			3,379
Office supplies		1,931			2,005
Repossessed asset losses, net of expenses		1,453			672
Other expenses		8,430			9,155
Total Non-Interest Expense		78,721			77,244
Income Before Income Taxes		57,413			63,178
Income tax expense		18,453			20,533
Net Income Available to Common Shareholders	$	38,960		$	42,645


Distributed earnings allocated to common shareholders	$	20,956		$	21,481

Undistributed earnings allocated to common shareholders		17,767			21,185

Net earnings allocated to common shareholders	$	38,723		$	42,666

Average common shares outstanding		15,589			15,877

Effect of dilutive securities:
Employee stock options		62			55

Shares for diluted earnings per share		15,651			15,932

Basic earnings per common share	$	2.48		$	2.69
Diluted earnings per common share	$	2.47		$	2.68

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


	Three Months Ended
	December 31, 2010			December 31, 2009

Balance at October 1	$	314,841		$	305,140

Net income		9,908			11,078
Other comprehensive income:
Change in unrealized (loss) on securities available-for-sale		(4,427	)		(467	)
Change in underfunded pension liability		(77	)		521
Change in unrealized (loss) on interest rate floors		(491	)		(1,242	)
Cash dividends declared ($0.34/share)		(5,269	)		(5,401	)
Issuance of stock award shares, net		186			110
Exercise of 6,262 stock options		175			-
Exercise of 300 stock options		-			4
Excess tax benefits on stock compensation		15			-
Purchase of 27,600 common shares of treasury		-			(841	)
Balance at December 31	$	314,861		$	308,902



	Twelve Months Ended
	December 31, 2010			December 31, 2009

Balance at January 1	$	308,902		$	285,463

Net income		38,960			42,645
Other comprehensive income:
Change in unrealized gain on securities available-for-sale		2,902			11,442
Change in unrealized (loss) on interest rate floors		(2,768	)		(6,224	)
Change in underfunded pension liability		(77	)		521
Cash dividends declared ($1.36/share)		(21,222	)		(21,652	)
Issuance of stock award shares, net		830			564
Exercise of 7,962 stock options		221			-
Exercise of 1,350 stock options		-			29
Excess tax benefits on stock compensation		15			-
Purchase of 408,151 common shares of treasury		(12,902	)		-
Purchase of 133,286 common shares of treasury		-			(3,886	)
Balance at December 31	$	314,861		$	308,902

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
	2010			2010			2010			2010			2009

Interest income	$	29,241		$	29,970		$	31,770		$	30,935		$	31,887
Taxable equivalent adjustment		244			244			246			255			234
Interest income (FTE)		29,485			30,214			32,016			31,190			32,121
Interest expense		6,283			6,810			7,092			7,444			8,302
Net interest income		23,202			23,404			24,924			23,746			23,819
Provision for loan losses		2,343			1,847			1,823			1,080			1,475
Net interest income after provision
for loan losses		20,859			21,557			23,101			22,666			22,344

Noninterest income		11,905			11,643			13,278			12,112			12,923
Noninterest expense		18,400			19,804			19,965			20,551			19,316
Income before income taxes		14,364			13,396			16,414			14,227			15,951
Income tax expense		4,212			4,129			5,453			4,659			4,639
Taxable equivalent adjustment		244			244			246			255			234
Net income available to common shareholders	$	9,908		$	9,023		$	10,715		$	9,313		$	11,078



Distributed earnings allocated to common shareholders	$	5,239		$	5,237		$	5,274		$	5,345		$	5,370
Undistributed earnings allocated to common shareholders		4,610			3,733			5,373			3,918			5,697
Net earnings allocated to common shareholders	$	9,849		$	8,970		$	10,648		$	9,263		$	11,067

Average common shares outstanding		15,439			15,496			15,656			15,793			15,838

Effect of dilutive securities:
Employee stock options		69			56			65			58			53

Shares for diluted earnings per share		15,508			15,552			15,721			15,851			15,891

Basic earnings per common share	$	0.64		$	0.58		$	0.68		$	0.59		$	0.70
Diluted earnings per common share		0.64			0.58			0.68			0.58			0.70

Cash dividends declared per share		0.34			0.34			0.34			0.34			0.34


Average Common Share (000s):
Outstanding		15,439			15,496			15,656			15,793			15,838
Diluted		15,508			15,552			15,721			15,851			15,897

Net Interest Margin		3.92	%		3.94	%		4.22	%		4.14	%		4.07	%

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
	2010			2010			2010			2010			2009

Non-Interest Income:
Service charges	$	9,624		$	9,702		$	10,448		$	10,228		$	11,628
Insurance commissions		1,503			1,346			1,244			1,397			1,110
Trust and investment management fee income		720			618			567			862			549
Bank owned life insurance		751			1,104			813			728			753
Other income		527			439			437			548			320
Subtotal		13,125			13,209			13,509			13,763			14,360
Total investment securities impairment losses		(1,932	)		(3,028	)		(1,237	)		(3,203	)		(861	)
Noncredit impairment losses recognized in other
comprehensive income		713			127			944			1,552			-
Net investment securities impairment losses		(1,219	)		(2,901	)		(293	)		(1,651	)		(861	)
Gain (loss) on sale of investment securities		(1	)		1,335			62			-			(576	)
Total Non-Interest Income	$	11,905		$	11,643		$	13,278		$	12,112		$	12,923

Non-Interest Expense:
Salaries and employee benefits	$	8,930		$	9,817		$	9,745		$	9,749		$	8,523
Occupancy and equipment		1,861			1,917			1,874			2,045			1,947
Depreciation		1,138			1,145			1,174			1,218			1,180
Professional fees		502			414			398			363			439
Postage, delivery, and statement mailings		548			599			615			609			573
Advertising		647			891			1,241			913			830
Telecommunications		428			413			440			451			455
Bankcard expenses		548			481			448			476			570
Insurance and regulatory		1,238			1,244			1,200			1,187			1,014
Office supplies		457			497			484			493			484
Repossessed asset losses, net of expenses		196			234			78			946			321
Other expenses		1,907			2,152			2,268			2,101			2,880
Total Non-Interest Expense	$	18,400		$	19,804		$	19,965		$	20,551		$	19,216




Employees (Full Time Equivalent)		805			801			812			815			809
Branch Locations		68			68			67			67			67

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	December 31			December 31
	2010			2009
	(Unaudited)
Assets
Cash and due from banks	$	50,043		$	59,116
Interest-bearing deposits in depository institutions		5,336			3,519
Federal funds sold		11,000			-
Cash and cash equivalents		66,379			62,635

Investment securities available-for-sale, at fair value		429,720			485,767
Investment securities held-to-maturity, at amortized cost		23,865			28,164
Total investment securities		453,585			513,931

Gross loans		1,865,000			1,792,434
Allowance for loan losses		(18,224	)		(18,541	)
Net loans		1,846,776			1,773,893

Bank owned life insurance		76,231			73,388
Premises and equipment		64,530			64,193
Accrued interest receivable		7,264			7,969
Net deferred tax assets		29,235			29,480
Intangible assets		56,573			57,010
Other assets		36,722			40,121
Total Assets	$	2,637,295		$	2,622,620

Liabilities
Deposits:
Noninterest-bearing	$	337,927		$	328,440
Interest-bearing:
Demand deposits		486,737			457,293
Savings deposits		397,042			379,893
Time deposits		949,669			998,096
Total deposits		2,171,375			2,163,722
Short-term borrowings		112,710			118,329
Long-term debt		16,495			16,959
Other liabilities		21,854			14,708
Total Liabilities		2,322,434			2,313,718

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, 2010 and December 31, 2009
less 2,994,501 and 2,616,161 shares in treasury, respectively		46,249			46,249
Capital surplus		103,057			102,917
Retained earnings		270,905			253,167
Cost of common stock in treasury		(102,853	)		(90,877	)
Accumulated other comprehensive loss:
Unrealized gain/(loss) on securities available-for-sale		1,022			(1,880	)
Unrealized gain on derivative instruments		295			3,063
Underfunded pension liability		(3,814	)		(3,737	)
Total Accumulated Other Comprehensive Loss		(2,497	)		(2,554	)
Total Stockholders' Equity		314,861			308,902
Total Liabilities and Stockholders' Equity	$	2,637,295		$	2,622,620

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

	Original Cost		Credit-Related Net Investment Impairment Losses through December 31, 2010			Unrealized Gains (Losses)			Carrying Value

Mortgage Backed Securities		267,077		-			7,858			274,935
Municipal Bonds		66,074		-			290			66,364
Pooled Bank Trust Preferreds		27,090		(19,241	)		(4,494	)		3,355
Single Issuer Bank Trust Preferreds,
Subdebt of Financial Institutions, and
Bank Holding Company Preferred Stocks		93,211		(1,653	)		(1,482	)		90,075
Money Markets and Mutual Funds		1,617		-			(7	)		1,610
Federal Reserve Bank and FHLB stock		12,553		-			-			12,553
Community Bank Equity Positions		10,337		(5,130	)		(514	)		4,693
Total Investments	$	477,958	$	(26,024	)	$	1,651		$	453,585

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

	December 31		September 30		June 30		March 31			December 31
	2010		2010		2010		2010			2009

Residential real estate	$	610,369	$	605,351	$	605,026	$	597,429		$	595,678
Home equity		416,172		411,481		404,789		398,443			398,752
Commercial, financial, and agriculture		796,370		765,331		778,114		761,223			752,052
Installment loans to individuals		41,300		42,407		43,859		43,597			44,239
Previously securitized loans		789		1,268		1,784		1,148			1,713
Gross Loans	$	1,865,000	$	1,825,838	$	1,833,572	$	1,801,840		$	1,792,434






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		0.8		4.0		333	%
		2011		0.6		1.4		200	%
		2012		0.5		1.1		200	%
		2013		0.4		0.9		200	%

a - 2009 and 2010 amounts are based on actual results. 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 December 31,
				2010								2009
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	602,002		$	7,624		5.02	%	$	590,284		$	8,064		5.42	%
Home equity		413,810			5,256		5.04	%		397,088			5,744		5.74	%
Commercial, financial, and agriculture		769,158			9,580		4.94	%		752,870			10,095		5.32	%
Installment loans to individuals		51,731			966		7.41	%		50,430			1,008		7.93	%
Previously securitized loans		986			699		281.26	%		2,087			835		158.73	%
Total loans		1,837,687			24,125		5.21	%		1,792,759			25,746		5.70	%
Securities:
Taxable		421,648			4,646		4.37	%		480,044			5,706		4.72	%
Tax-exempt		50,584			698		5.47	%		44,964			668		5.89	%
Total securities		472,232			5,344		4.49	%		525,008			6,374		4.82	%
Deposits in depository institutions		5,134			-		-			5,546			1		0.07	%
Federal funds sold		32,060			16		-			-			-		-
Total interest-earning assets		2,347,113			29,485		4.98	%		2,323,313			32,121		5.49	%
Cash and due from banks		54,314								51,956
Bank premises and equipment		65,005								64,188
Other assets		206,879								206,069
Less: Allowance for loan losses		(18,680	)							(19,641	)
Total assets	$	2,654,631							$	2,625,885

Liabilities:
Interest-bearing demand deposits		466,985			243		0.21	%		435,374			377		0.34	%
Savings deposits		392,438			224		0.23	%		378,728			360		0.38	%
Time deposits		959,249			5,575		2.31	%		1,009,667			7,264		2.85	%
Short-term borrowings		116,987			78		0.26	%		128,995			135		0.42	%
Long-term debt		16,737			162		3.84	%		17,151			168		3.89	%
Total interest-bearing liabilities		1,952,396			6,282		1.28	%		1,969,915			8,304		1.67	%
Noninterest-bearing demand deposits		359,647								331,012
Other liabilities		21,547								17,739
Stockholders' equity		321,041								307,219
Total liabilities and
stockholders' equity	$	2,654,631							$	2,625,885
Net interest income				$	23,203							$	23,817
Net yield on earning assets							3.92	%							4.07	%

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

	Twelve Months Ended December 31,
				2010								2009
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Assets:
Loan portfolio:
Residential real estate	$	598,484		$	31,218		5.22	%	$	595,518		$	33,558		5.64	%
Home equity		405,539			21,263		5.24	%		392,077			23,909		6.10	%
Commercial, financial, and agriculture		765,634			39,163		5.12	%		756,745			41,614		5.50	%
Installment loans to individuals		49,724			3,796		7.63	%		49,733			4,158		8.36	%
Previously securitized loans		1,207			4,016		332.73	%		3,042			3,902		128.27	%
Total loans		1,820,588			99,456		5.46	%		1,797,115			107,141		5.96	%
Securities:
Taxable		458,398			20,594		4.49	%		460,350			23,200		5.04	%
Tax-exempt		49,517			2,826		5.71	%		41,123			2,589		6.30	%
Total securities		507,915			23,420		4.61	%		501,473			25,789		5.14	%
Deposits in depository institutions		5,249			-		-			5,340			11		0.21	%
Federal funds sold		14,506			29		-			123			-		-
Total interest-earning assets		2,348,258			122,905		5.23	%		2,304,051			132,941		5.77	%
Cash and due from banks		53,384								51,655
Bank premises and equipment		64,666								62,883
Other assets		207,454								211,466
Less: Allowance for loan losses		(19,265	)							(21,306	)
Total assets	$	2,654,497							$	2,608,749

Liabilities:
Interest-bearing demand deposits		462,641			1,242		0.27	%		428,342			1,703		0.40	%
Savings deposits		389,385			1,016		0.26	%		373,476			1,746		0.47	%
Time deposits		983,310			24,349		2.48	%		1,006,146			31,781		3.16	%
Short-term borrowings		112,575			362		0.32	%		134,016			529		0.39	%
Long-term debt		16,876			658		3.90	%		18,286			844		4.62	%
Total interest-bearing liabilities		1,964,787			27,627		1.41	%		1,960,266			36,603		1.87	%
Noninterest-bearing demand deposits		354,988								328,985
Other liabilities		18,692								24,917
Stockholders' equity		316,030								294,581
Total liabilities and
stockholders' equity	$	2,654,497							$	2,608,749
Net interest income				$	95,278							$	96,338
Net yield on earning assets							4.06	%							4.18	%

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

	December 31			September 30			June 30			March 31			December 31
	2010 (a)			2010			2010			2010			2009

Tier I Capital:
Stockholders' equity	$	314,861		$	314,841		$	312,575		$	312,835		$	308,902
Goodwill and other intangibles		(56,378	)		(56,487	)		(56,596	)		(56,705	)		(56,810	)
Accumulated other comprehensive loss (income)		2,497			(2,498	)		(950	)		330			2,554
Qualifying trust preferred stock		16,000			16,000			16,000			16,000			16,000
Unrealized Loss on AFS securities		(521	)		(1,277	)		(3,668	)		(2,950	)		(3,531	)
Excess deferred tax assets		(2,904	)		(2,916	)		(3,530	)		(3,827	)		(3,412	)
Total tier I capital	$	273,555		$	267,664		$	262,664		$	264,516		$	262,536


Total Risk-Based Capital:
Tier I capital	$	273,555		$	267,664		$	262,664		$	264,516		$	262,536
Qualifying allowance for loan losses		18,224			18,364			19,456			18,982			18,687
Total risk-based capital	$	291,779		$	286,028		$	282,120		$	283,498		$	281,223

Net risk-weighted assets	$	1,970,635		$	1,949,080		$	1,952,076		$	1,935,071		$	1,926,824


Ratios:
Average stockholders' equity to average assets		12.09	%		11.90	%		11.76	%		11.87	%		11.70	%
Tangible capital ratio		10.01	%		10.04	%		9.86	%		9.79	%		9.77	%
Risk-based capital ratios:
Tier I capital		13.88	%		13.73	%		13.46	%		13.67	%		13.63	%
Total risk-based capital		14.81	%		14.68	%		14.45	%		14.65	%		14.60	%
Leverage capital		10.54	%		10.30	%		10.06	%		10.28	%		10.23	%


(a) December 31, 2010 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
		2010			2010			2010			2010			2009

Intangibles, net	$	56,573		$	56,682		$	56,791		$	56,900		$	57,010
Intangibles amortization expense		109			109			109			110			117

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

	Quarter Ended
	December 31			September 30			June 30			March 31			December 31
	2010			2010			2010			2010			2009

Balance at beginning of period	$	18,364		$	19,456		$	18,836		$	18,541		$	19,609

Charge-offs:
Commercial, financial, and agricultural		174			2,046			796			361			1,821
Real estate-mortgage		823			654			637			423			448
Installment loans to individuals		38			43			20			26			87
Overdraft deposit accounts		1,867			615			565			550			737
Total charge-offs		2,902			3,358			2,018			1,360			3,093

Recoveries:
Commercial, financial, and agricultural		29			28			378			9			88
Real estate-mortgage		27			12			38			23			31
Installment loans to individuals		37			29			53			50			37
Overdraft deposit accounts		326			350			346			493			394
Total recoveries		419			419			815			575			550

Net charge-offs		2,483			2,939			1,203			785			2,543
Provision for loan losses		2,343			1,847			1,823			1,080			1,475
Balance at end of period	$	18,224		$	18,364		$	19,456		$	18,836		$	18,541

Loans outstanding	$	1,865,000		$	1,825,838		$	1,833,572		$	1,801,840		$	1,792,434
Average loans outstanding		1,837,687			1,829,119			1,821,822			1,793,134			1,792,759
Allowance as a percent of loans outstanding		0.98	%		1.01	%		1.06	%		1.05	%		1.03	%
Allowance as a percent of non-performing loans		156.39	%		160.40	%		177.78	%		131.60	%		132.02	%
Net charge-offs (annualized) as a
percent of average loans outstanding		0.54	%		0.64	%		0.26	%		0.18	%		0.57	%
Net charge-offs, excluding overdraft deposit
accounts, (annualized) as a percent of average loans outstanding		0.21	%		0.58	%		0.22	%		0.16	%		0.49	%

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

	December 31			September 30			June 30			March 31			December 31
	2010			2010			2010			2010			2009

Nonaccrual loans	$	10,817		$	11,220		$	10,246		$	14,008		$	13,583
Accruing loans past due 90 days or more		782			195			698			305			382
Previously securitized loans past due 90 days or more		54			34			-			-			79
Total non-performing loans		11,653			11,449			10,944			14,313			14,044
Other real estate owned, excluding property associated
with previously securitized loans		9,316			12,636			12,722			10,800			11,729
Other real estate owned associated with previously
securitized loans		-			-			-			-			-
Other real estate owned		9,316			12,636			12,722			10,800			11,729
Total non-performing assets	$	20,969		$	24,085		$	23,666		$	25,113		$	25,773

Non-performing assets as a percent of loans and
other real estate owned		1.12	%		1.31	%		1.28	%		1.39	%		1.43	%



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

	December 31			September 30			June 30			March 31			December 31
		2010			2010			2010			2010			2009

Residential real estate	$	4,774		$	3,815		$	5,298		$	3,850		$	3,830
Home equity		2,276			2,863			1,763			1,818			2,396
Commercial, financial, and agriculture		775			262			3,680			498			601
Installment loans to individuals		147			106			168			133			172
Previously securitized loans		345			518			394			539			1,023
Overdraft deposit accounts		361			337			399			326			461
Total past due loans	$	8,678		$	7,901		$	11,702		$	7,164		$	8,483