West Virginia
|
55-0619957
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
25
Gatewater Road
|
|
Charleston,
West Virginia
|
25313
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Yes
|
[X]
|
No
|
[ ]
|
Yes
|
[ ]
|
No
|
[ ]
|
Large
accelerated filer [ ]
|
Accelerated
filer [X]
|
|
Non-accelerated
filer [ ]
|
Smaller
reporting company
[ ]
|
Yes
|
[ ]
|
No
|
[X]
|
Financial
Information
|
Pages
|
|
Item
1.
|
4-25
|
|
Consolidated Statements of Income – Three months ended
June 30, 2009 and 2008 and Six months ended June 30, 2009 and
2008.
|
||
Consolidated Statements of Changes in Shareholders’ Equity
– Six months ended June 30, 2009 and 2008.
|
||
Consolidated Statements of Cash Flows – Six months
ended June 30, 2009 and 2008.
|
||
Item
2.
|
26-45
|
|
Item
3.
|
46
|
|
Item
4.
|
46
|
|
Other
Information
|
||
Item
1.
|
47
|
|
Item
1A.
|
47
|
|
Item
2.
|
47
|
|
Item
3.
|
47
|
|
Item
4.
|
47
|
|
Item
5.
|
47
|
|
Item
6.
|
47
|
|
48
|
||
June
30
|
December
31
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
(Note
A)
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 48,058 | $ | 55,511 | ||||
Interest-bearing
deposits in depository institutions
|
4,912 | 4,118 | ||||||
Cash
and Cash Equivalents
|
52,970 | 59,629 | ||||||
Investment
securities available for sale, at fair value
|
502,286 | 424,214 | ||||||
Investment
securities held-to-maturity, at amortized cost (approximate fair value
at June 30, 2009 and December 31, 2008 - $22,533
and $22,050, respectively)
|
29,029 | 29,067 | ||||||
Total
Investment Securities
|
531,315 | 453,281 | ||||||
Gross
loans
|
1,786,335 | 1,812,344 | ||||||
Allowance
for loan losses
|
(20,975 | ) | (22,254 | ) | ||||
Net
Loans
|
1,765,360 | 1,790,090 | ||||||
Bank
owned life insurance
|
71,874 | 70,400 | ||||||
Premises
and equipment
|
63,425 | 60,138 | ||||||
Accrued
interest receivable
|
8,936 | 9,024 | ||||||
Net
deferred tax asset
|
45,694 | 48,462 | ||||||
Intangible
assets
|
57,244 | 57,479 | ||||||
Other
assets
|
29,499 | 33,943 | ||||||
Total
Assets
|
$ | 2,626,317 | $ | 2,582,446 | ||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 315,278 | $ | 298,530 | ||||
Interest-bearing:
|
||||||||
Demand
deposits
|
430,113 | 420,554 | ||||||
Savings
deposits
|
379,848 | 354,956 | ||||||
Time
deposits
|
1,018,594 | 967,090 | ||||||
Total
Deposits
|
2,143,833 | 2,041,130 | ||||||
Short-term
borrowings
|
136,421 | 194,463 | ||||||
Long-term
debt
|
18,002 | 19,047 | ||||||
Other
liabilities
|
36,879 | 47,377 | ||||||
Total Liabilities
|
2,335,135 | 2,302,017 | ||||||
Shareholders’
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 June 30, 2009 and December 31, 2008, less 2,536,563 and
2,548,538
shares in treasury, respectively
|
46,249 | 46,249 | ||||||
Capital
surplus
|
101,658 | 102,895 | ||||||
Retained
earnings
|
240,847 | 230,613 | ||||||
Cost
of common stock in treasury
|
(88,357 | ) | (88,729 | ) | ||||
Accumulated
other comprehensive (loss):
|
||||||||
Unrealized
loss on securities available-for-sale
|
(10,676 | ) | (15,628 | ) | ||||
Unrealized
gain on derivative instruments
|
5,719 | 9,287 | ||||||
Underfunded
pension liability
|
(4,258 | ) | (4,258 | ) | ||||
Total
Accumulated Other Comprehensive (Loss)
|
(9,215 | ) | (10,599 | ) | ||||
Total
Shareholders’ Equity
|
291,182 | 280,429 | ||||||
Total
Liabilities and Shareholders’ Equity
|
$ | 2,626,317 | $ | 2,582,446 |
Three
Months Ended June 30
|
Six
Months Ended June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Interest
Income
|
||||||||||||||||
Interest
and fees on loans
|
$ | 26,946 | $ | 30,416 | $ | 55,004 | $ | 61,408 | ||||||||
Interest
on investment securities:
|
||||||||||||||||
Taxable
|
5,612 | 6,120 | 11,674 | 12,184 | ||||||||||||
Tax-exempt
|
403 | 381 | 812 | 780 | ||||||||||||
Interest
on deposits in depository institutions
|
3 | 51 | 8 | 116 | ||||||||||||
Total
Interest Income
|
32,964 | 36,968 | 67,498 | 74,488 | ||||||||||||
Interest
Expense
|
||||||||||||||||
Interest
on deposits
|
9,184 | 10,519 | 18,557 | 22,534 | ||||||||||||
Interest
on short-term borrowings
|
111 | 663 | 264 | 1,808 | ||||||||||||
Interest
on long-term debt
|
231 | 312 | 485 | 753 | ||||||||||||
Total
Interest Expense
|
9,526 | 11,494 | 19,306 | 25,095 | ||||||||||||
Net
Interest Income
|
23,438 | 25,474 | 48,192 | 49,393 | ||||||||||||
Provision
for loan losses
|
2,150 | 850 | 3,800 | 2,733 | ||||||||||||
Net
Interest Income After Provision for Loan Losses
|
21,288 | 24,624 | 44,392 | 46,660 | ||||||||||||
Non-interest
Income
|
||||||||||||||||
Investment
securities (losses) gains
|
(332 | ) | - | (2,407 | ) | 2 | ||||||||||
Service
charges
|
11,261 | 11,269 | 21,696 | 22,543 | ||||||||||||
Insurance
commissions
|
1,325 | 1,168 | 3,258 | 2,206 | ||||||||||||
Trust
and investment management fee income
|
497 | 449 | 1,204 | 1,081 | ||||||||||||
Bank
owned life insurance
|
992 | 750 | 1,724 | 1,426 | ||||||||||||
VISA
IPO Gain
|
- | - | - | 3,289 | ||||||||||||
Other
income
|
544 | 559 | 1,245 | 966 | ||||||||||||
Total
Non-interest Income
|
14,287 | 14,195 | 26,720 | 31,513 | ||||||||||||
Non-interest
Expense
|
||||||||||||||||
Salaries
and employee benefits
|
9,797 | 9,517 | 19,380 | 18,880 | ||||||||||||
Occupancy
and equipment
|
1,880 | 1,701 | 3,789 | 3,298 | ||||||||||||
Depreciation
|
1,184 | 1,087 | 2,395 | 2,220 | ||||||||||||
Professional
fees
|
397 | 427 | 850 | 794 | ||||||||||||
Postage,
delivery, and statement mailings
|
698 | 618 | 1,416 | 1,272 | ||||||||||||
Advertising
|
927 | 643 | 1,790 | 1,260 | ||||||||||||
Telecommunications
|
514 | 440 | 934 | 858 | ||||||||||||
Bankcard
expenses
|
686 | 640 | 1,334 | 1,261 | ||||||||||||
Insurance
and regulatory
|
1,578 | 333 | 1,954 | 671 | ||||||||||||
Office
supplies
|
470 | 504 | 1,001 | 961 | ||||||||||||
Repossessed
asset losses, net of expenses
|
86 | 91 | 215 | 123 | ||||||||||||
Loss
on early extinguishment of debt
|
- | - | - | 1,208 | ||||||||||||
Other
expenses
|
2,119 | 2,760 | 4,112 | 5,854 | ||||||||||||
Total
Non-interest Expense
|
20,336 | 18,761 | 39,170 | 38,660 | ||||||||||||
Income
Before Income Taxes
|
15,239 | 20,058 | 31,942 | 39,513 | ||||||||||||
Income
tax expense
|
5,093 | 6,679 | 10,872 | 13,096 | ||||||||||||
Net
Income
|
10,146 | 13,379 | 21,070 | 26,417 | ||||||||||||
Basic
earnings per common share
|
$ | 0.64 | $ | 0.83 | $ | 1.32 | $ | 1.64 | ||||||||
Diluted
earnings per common share
|
$ | 0.64 | $ | 0.83 | $ | 1.32 | $ | 1.63 | ||||||||
Dividends
declared per common share
|
$ | 0.34 | $ | 0.34 | $ | 0.68 | $ | 0.68 | ||||||||
Average
common shares outstanding:
|
||||||||||||||||
Basic
|
15,908 | 16,103 | 15,903 | 16,124 | ||||||||||||
Diluted
|
15,949 | 16,167 | 15,941 | 16,186 |
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other Comprehensive Income (Loss)
|
Total
Shareholders’ Equity
|
|||||||||||||||||||
Balances
at December 31, 2007
|
$ | 46,249 | $ | 103,390 | $ | 224,386 | $ | (80,664 | ) | $ | 633 | $ | 293,994 | |||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||
Net
income
|
26,417 | 26,417 | ||||||||||||||||||||||
Other
comprehensive loss, net of deferred income taxes of
$2,901:
|
||||||||||||||||||||||||
Unrealized
losses on available-for-sale securities of $8,612, net of
taxes
|
(5,166 | ) | (5,166 | ) | ||||||||||||||||||||
Net
unrealized gain on interest rate floors of $1,358, net of
taxes
|
815 | 815 | ||||||||||||||||||||||
Total
comprehensive income
|
22,066 | |||||||||||||||||||||||
Cash
dividends declared ($0.68 per share)
|
(10,965 | ) | (10,965 | ) | ||||||||||||||||||||
Issuance
of stock awards, net
|
(133 | ) | 473 | 340 | ||||||||||||||||||||
Exercise
of 18,075 stock options
|
(318 | ) | 633 | 315 | ||||||||||||||||||||
Excess
tax benefit on stock-basedcompensation
|
23 | 23 | ||||||||||||||||||||||
Purchase
of 104,960 treasury shares
|
(3,717 | ) | (3,717 | ) | ||||||||||||||||||||
Balances
at June 30, 2008
|
$ | 46,249 | $ | 102,962 | $ | 239,838 | $ | (83,275 | ) | $ | (3,718 | ) | $ | 302,056 |
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other Comprehensive (Loss)
|
Total
Shareholders’ Equity
|
|||||||||||||||||||
Balances
at December 31, 2008
|
$ | 46,249 | $ | 102,895 | $ | 230,613 | $ | (88,729 | ) | $ | (10,599 | ) | $ | 280,429 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||
Net
income
|
21,070 | 21,070 | ||||||||||||||||||||||
Other
comprehensive gain, net of deferred income taxes of 2,282:
|
||||||||||||||||||||||||
Unrealized
gains on available-for-sale securities of $8,167, net of
taxes
|
4,953 | 4,953 | ||||||||||||||||||||||
Net
unrealized loss on interest rate floors of $5,885, net of
taxes
|
(3,569 | ) | (3,569 | ) | ||||||||||||||||||||
Total
comprehensive income
|
22,454 | |||||||||||||||||||||||
Cash
dividends declared ($0.68 per share)
|
(10,836 | ) | (10,836 | ) | ||||||||||||||||||||
Issuance
of stock awards, net
|
(1,233 | ) | 1,607 | 374 | ||||||||||||||||||||
Exercise
of 300 stock options
|
(4 | ) | 7 | 3 | ||||||||||||||||||||
Purchase
of 49,363 treasury shares
|
(1,242 | ) | (1,242 | ) | ||||||||||||||||||||
Balances
at June 30, 2009
|
$ | 46,249 | $ | 101,658 | $ | 240,847 | $ | (88,357 | ) | $ | (9,215 | ) | $ | 291,182 |
Six
Months Ended June 30
|
||||||||
2009
|
2008
|
|||||||
Operating
Activities
|
||||||||
Net
income
|
$ | 21,070 | $ | 26,417 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Amortization
and accretion
|
(24 | ) | (777 | ) | ||||
Provision
for loan losses
|
3,800 | 2,733 | ||||||
Depreciation
of premises and equipment
|
2,395 | 2,220 | ||||||
Deferred
income tax (benefit) expense
|
(445 | ) | 533 | |||||
Accretion
of gain from sale of interest rate floors
|
(3,569 | ) | - | |||||
Net
periodic employee benefit cost
|
100 | 24 | ||||||
Loss
on early extinguishment of debt
|
- | 1,208 | ||||||
Loss
on disposal of premises and equipment
|
- | 111 | ||||||
Realized
investment securities losses (gains)
|
2,407 | (2 | ) | |||||
Increase
in value of bank-owned life insurance
|
(1,724 | ) | (1,427 | ) | ||||
Proceeds
from bank-owned life insurance
|
250 | - | ||||||
Decrease
in accrued interest receivable
|
88 | 1,331 | ||||||
Decrease
(Increase) in other assets
|
4,444 | (6,305 | ) | |||||
Decrease
in other liabilities
|
(10,228 | ) | (5,679 | ) | ||||
Net
Cash Provided by Operating Activities
|
18,564 | 20,387 | ||||||
Investing
Activities
|
||||||||
Proceeds
from maturities and calls of securities held-to-maturity
|
- | 1,220 | ||||||
Proceeds
from sale of money market and mutual fund securities
available-for-sale
|
302,483 | 612,600 | ||||||
Purchases
of money market and mutual fund securities
available-for-sale
|
(365,421 | ) | (618,517 | ) | ||||
Proceeds
from sales of securities available-for-sale
|
161 | 2,591 | ||||||
Proceeds
from maturities and calls of securities available-for-sale
|
49,663 | 31,750 | ||||||
Purchases
of securities available-for-sale
|
(59,914 | ) | (61,408 | ) | ||||
Net
decrease in loans
|
21,939 | 16,632 | ||||||
Sales
of premises and equipment
|
- | 337 | ||||||
Purchases
of premises and equipment
|
(5,682 | ) | (4,525 | ) | ||||
Investment
in bank-owned life insurance
|
- | (3,000 | ) | |||||
Redemption
of VISA stock
|
- | 2,334 | ||||||
Net
Cash Used in Investing Activities
|
(56,771 | ) | (19,986 | ) | ||||
Financing
Activities
|
||||||||
Net
increase in noninterest-bearing deposits
|
16,748 | 12,503 | ||||||
Net
increase in interest-bearing deposits
|
85,955 | 5,723 | ||||||
Net
(decrease) in short-term borrowings
|
(59,042 | ) | (8,260 | ) | ||||
Proceeds
from long-term debt
|
- | 16,495 | ||||||
Repayment
of long-term debt
|
(42 | ) | (58 | ) | ||||
Redemption
of trust preferred securities
|
- | (17,568 | ) | |||||
Purchases
of treasury stock
|
(1,242 | ) | (3,717 | ) | ||||
Proceeds
from exercise of stock options
|
3 | 315 | ||||||
Excess
tax benefits from stock-based compensation arrangements
|
- | 23 | ||||||
Dividends
paid
|
(10,832 | ) | (10,504 | ) | ||||
Net
Cash Provided by (Used in) Financing Activities
|
31,548 | (5,048 | ) | |||||
Decrease
in Cash and Cash Equivalents
|
(6,659 | ) | (4,647 | ) | ||||
Cash
and cash equivalents at beginning of period
|
59,629 | 74,518 | ||||||
Cash
and Cash Equivalents at End of Period
|
$ | 52,970 | $ | 69,871 |
June
30, 2009
|
December
31, 2008
|
|||||||||||||||||||||||||||||||
(in
thousands)
|
Amortized
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Estimated
Fair Value
|
Amortized
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Estimated
Fair Value
|
||||||||||||||||||||||||
Securities
available-for-sale:
|
||||||||||||||||||||||||||||||||
Obligations of states and
political subdivisions
|
$ | 46,422 | $ | 336 | $ | (776 | ) | $ | 45,982 | $ | 41,960 | $ | 196 | $ | (735 | ) | $ | 41,421 | ||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||||||||||
US government
agencies
|
277,966 | 7,459 | (253 | ) | 285,172 | 269,121 | 3,986 | (302 | ) | 272,805 | ||||||||||||||||||||||
Private label
|
14,842 | - | (991 | ) | 13,851 | 18,112 | - | (2,584 | ) | 15,528 | ||||||||||||||||||||||
Trust
preferredsecurities
|
69,492 | 444 | (17,124 | ) | 52,812 | 73,544 | 57 | (20,515 | ) | 53,086 | ||||||||||||||||||||||
Corporate
securities
|
22,870 | - | (2,701 | ) | 20,169 | 22,862 | - | (2,314 | ) | 20,548 | ||||||||||||||||||||||
Total
DebtSecurities
|
431,592 | 8,239 | (21,845 | ) | 417,986 | 425,599 | 4,239 | (26,450 | ) | 403,388 | ||||||||||||||||||||||
Marketable
equity securities
|
10,455 | - | (3,964 | ) | 6,491 | 9,476 | - | (3,511 | ) | 5,965 | ||||||||||||||||||||||
Non-marketable equity
securities
|
13,036 | - | - | 13,036 | 13,037 | - | - | 13,037 | ||||||||||||||||||||||||
Investment
funds
|
64,797 | - | (24 | ) | 64,773 | 1,859 | - | (35 | ) | 1,824 | ||||||||||||||||||||||
Total
SecuritiesAvailable-for-Sale
|
$ | 519,880 | $ | 8,239 | $ | (25,833 | ) | $ | 502,286 | $ | 449,971 | $ | 4,239 | $ | (29,996 | ) | $ | 424,214 | ||||||||||||||
Securities
held-to-maturity
|
||||||||||||||||||||||||||||||||
Obligations of states and
political subdivisions
|
$ | 2,836 | $ | 29 | $ | - | $ | 2,865 | $ | 2,834 | $ | 28 | $ | - | $ | 2,862 | ||||||||||||||||
Trust preferred
securities
|
26,193 | - | (6,525 | ) | 19,668 | 26,233 | - | (7,045 | ) | 19,188 | ||||||||||||||||||||||
Total
SecuritiesHeld-to-Maturity
|
$ | 29,029 | $ | 29 | $ | (6,525 | ) | $ | 22,533 | $ | 29,067 | $ | 28 | $ | (7,045 | ) | $ | 22,050 |
June
30, 2009
|
||||||||||||||||||||||||
Less
Than Twelve Months
|
Twelve
Months or Greater
|
Total
|
||||||||||||||||||||||
(in
thousands)
|
Estimated
Fair Value
|
Unrealized
Loss
|
Estimated
Fair Value
|
Unrealized
Loss
|
Estimated
Fair Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities
available-for-sale:
|
||||||||||||||||||||||||
Obligations
of states and politicalsubdivisions
|
$ | 15,361 | $ | 420 | $ | 2,826 | $ | 356 | $ | 18,187 | $ | 776 | ||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
US Government
agencies
|
34,473 | 246 | 1,474 | 7 | 35,947 | 253 | ||||||||||||||||||
Private-label
|
- | - | 13,852 | 991 | 13,852 | 991 | ||||||||||||||||||
Trust
preferred securities
|
11,226 | 3,478 | 27,631 | 13,646 | 38,857 | 17,124 | ||||||||||||||||||
Corporate
securities
|
5,632 | 954 | 3,292 | 1,747 | 8,924 | 2,701 | ||||||||||||||||||
Marketable
equity securities
|
3,191 | 1,224 | 3,259 | 2,740 | 6,450 | 3,964 | ||||||||||||||||||
Investment
funds
|
- | - | 1,476 | 24 | 1,476 | 24 | ||||||||||||||||||
Total
|
$ | 69,883 | $ | 6,322 | $ | 53,810 | $ | 19,511 | $ | 123,693 | $ | 25,833 | ||||||||||||
Securities
held-to-maturity:
|
||||||||||||||||||||||||
Trust
preferred securities
|
$ | 7,990 | $ | 1,887 | $ | 6,610 | $ | 4,638 | $ | 14,600 | $ | 6,525 | ||||||||||||
December
31, 2008
|
||||||||||||||||||||||||
Less
Than Twelve Months
|
Twelve
Months or Greater
|
Total
|
||||||||||||||||||||||
(in
thousands)
|
Estimated
Fair Value
|
Unrealized
Loss
|
Estimated
Fair Value
|
Unrealized
Loss
|
Estimated
Fair Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities
available-for-sale:
|
||||||||||||||||||||||||
Obligations
of states and politicalsubdivisions
|
$ | 17,068 | $ | 729 | $ | 187 | $ | 6 | $ | 17,255 | $ | 735 | ||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
US Government
agencies
|
28,104 | 302 | - | - | 28,104 | 302 | ||||||||||||||||||
Private-label
|
15,529 | 2,584 | - | - | 15,529 | 2,584 | ||||||||||||||||||
Trust
preferred securities
|
32,236 | 8,179 | 8,122 | 12,336 | 40,358 | 20,515 | ||||||||||||||||||
Corporate
securities
|
7,365 | 2,314 | - | - | 7,365 | 2,314 | ||||||||||||||||||
Marketable
equity securities
|
5,305 | 3,010 | 659 | 501 | 5,964 | 3,511 | ||||||||||||||||||
Investment
funds
|
- | - | 1,465 | 35 | 1,465 | 35 | ||||||||||||||||||
Total
|
$ | 105,607 | $ | 17,118 | $ | 10,433 | $ | 12,878 | $ | 116,040 | $ | 29,996 | ||||||||||||
Securities
held-to-maturity:
|
||||||||||||||||||||||||
Trust
preferred securities
|
$ | 12,408 | $ | 5,282 | $ | 1,700 | $ | 1,763 | $ | 14,108 | $ | 7,045 |
(in
thousands)
|
Cost
|
Estimated
Fair Value
|
||||||
Securities
Available-for-Sale
|
||||||||
Due
in one year or less
|
$ | 1,627 | $ | 1,642 | ||||
Due
after one year through five years
|
19,298 | 22,316 | ||||||
Due
after five years through ten years
|
91,076 | 88,048 | ||||||
Due
after ten years
|
319,591 | 305,980 | ||||||
$ | 431,592 | $ | 417,986 | |||||
Securities
Held-to-Maturity
|
||||||||
Due
in one year or less
|
$ | 1,200 | $ | 1,208 | ||||
Due
after one year through five years
|
1,636 | 1,657 | ||||||
Due
after five years through ten years
|
- | - | ||||||
Due
after ten years
|
26,193 | 19,668 | ||||||
$ | 29,029 | $ | 22,533 |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
(in
thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Gross
realized gains
|
$ | - | $ | - | $ | 82 | $ | 2 | ||||||||
Gross
realized losses
|
(332 | ) | - | (2,489 | ) | - | ||||||||||
Investment
security gains (losses)
|
$ | (332 | ) | $ | - | $ | (2,407 | ) | $ | 2 |
As
of and for the Six
Months
Ended
|
As
of and for the Year Ended
|
|||||||||||
June
30,
|
December
31,
|
|||||||||||
(
in thousands)
|
2009
|
2008
|
2008
|
|||||||||
Previously
Securitized Loans:
|
||||||||||||
Total
principal amount of loans outstanding
|
$ | 17,453 | $ | 21,116 | $ | 18,955 | ||||||
Discount
|
(14,230 | ) | (15,863 | ) | (14,733 | ) | ||||||
Net
book value
|
$ | 3,223 | $ | 5,253 | $ | 4,222 | ||||||
Principal
amount of loans between 30 and 89 days past due
|
$ | 846 | $ | 596 | $ | 999 | ||||||
Principal
amount of loans 90 days and above past due
|
32 | 36 | 10 | |||||||||
Net
credit recoveries during the period
|
416 | 248 | 351 |
(
in thousands)
|
June
30, 2009
|
December
31, 2008
|
||||||
Security
repurchase agreements
|
$ | 133,181 | $ | 122,904 | ||||
Short-term
advances
|
3,240 | 71,559 | ||||||
Total
short-term borrowings
|
$ | 136,421 | $ | 194,463 |
(dollars
in thousands)
|
Maturity
|
June
30, 2009
|
Weighted
Average Interest Rate
|
||||||
FHLB
Advances
|
2010
|
$ | 1,000 | 5.98 | % | ||||
FHLB
Advances
|
2011
|
507 | 4.44 | % | |||||
Junior
subordinated debentures owed to City Holding Capital Trust
III
|
2038
(a)
|
16,495 | 4.13 | % | |||||
Total
long-term debt
|
$ | 18,002 |
2009
|
2008
|
|||||||||||||||
Options
|
Weighted-Average
Exercise Price
|
Options
|
Weighted-Average
Exercise Price
|
|||||||||||||
Outstanding
at January 1
|
270,455 | $ | 33.96 | 305,909 | $ | 32.05 | ||||||||||
Granted
|
17,500 | 27.98 | 11,500 | 40.88 | ||||||||||||
Exercised
|
(300 | ) | 13.30 | (18,075 | ) | 17.44 | ||||||||||
Forfeited
|
- | - | - | - | ||||||||||||
Outstanding
at June 30
|
287,655 | $ | 33.62 | 299,334 | $ | 33.23 | ||||||||||
Ranges
of Exercise Prices
|
No.
of Options Outstanding
|
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining Contractual Life (Months)
|
Aggregate
Intrinsic Value (in thousands)
|
No.
of Options Currently Exercisable
|
Weighted-Average
Exercise Price of Options Currently Exercisable
|
Weighted-Average
Remaining Contractual Life (Months)
|
Aggregate
Intrinsic Value of Options Currently Exercisable (in
thousands)
|
||||||||||||||||||||||||||
$ | 13.30 | 1,600 | $ | 13.30 | 31 | $ | 27 | 1,600 | $ | 13.30 | 31 | $ | 27 | |||||||||||||||||||||
$ | 26.62 - $33.90 | 187,555 | 31.22 | 72 | 120 | 133,930 | 31.68 | 61 | 73 | |||||||||||||||||||||||||
$ | 35.36 - $40.88 | 98,500 | 38.52 | 88 | - | 39,250 | 36.86 | 79 | - | |||||||||||||||||||||||||
287,655 | $ | 147 | 174,780 | $ | 100 |
2009
|
2008
|
|||||||
Risk-free
interest rate
|
2.51 | % | 3.14 | % | ||||
Expected
dividend yield
|
4.83 | % | 3.33 | % | ||||
Volatility
factor
|
46.47 | % | 52.89 | % | ||||
Expected
life of option
|
8.0
years
|
8.0
years
|
||||||
2009
|
2008
|
|||||||||||||||
Restricted
Awards
|
Average
Market Price at Grant
|
Restricted
Awards
|
Average
Market Price at Grant
|
|||||||||||||
Outstanding
at January 1
|
36,175 | 31,818 | ||||||||||||||
Granted
|
53,225 | $ | 30.71 | 8,325 | $ | 40.88 | ||||||||||
Forfeited/Vested
|
(4,066 | ) | (3,800 | ) | ||||||||||||
Outstanding
at June 30
|
85,334 | 36,343 |
Three
months ended
June
30,
|
Six
months ended
June
30,
|
|||||||||||||||
(in
thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Components
of net periodic cost:
|
||||||||||||||||
Interest
cost
|
$ | 169 | $ | 166 | 338 | $ | 332 | |||||||||
Expected
return on plan assets
|
(199 | ) | (217 | ) | (398 | ) | (434 | ) | ||||||||
Net
amortization and deferral
|
80 | 63 | 160 | 126 | ||||||||||||
Net
Periodic Pension Cost
|
$ | 50 | $ | 12 | 100 | $ | 24 |
(
in thousands)
|
June
30, 2009
|
December
31, 2008
|
||||||
Commitments
to extend credit:
|
||||||||
Home
equity lines
|
$ | 130,914 | $ | 129,794 | ||||
Commercial
real estate
|
32,362 | 34,025 | ||||||
Other
commitments
|
171,182 | 173,522 | ||||||
Standby
letters of credit
|
21,611 | 18,388 | ||||||
Commercial
letters of credit
|
30 | 159 |
Six
months ended June 30,
|
||||||||
(in
thousands)
|
2009
|
2008
|
||||||
Net
income
|
$ | 21,070 | $ | 26,417 | ||||
Unrealized
security gains (losses) arising during the period
|
3,561 | (8,612 | ) | |||||
Reclassification
adjustment for losses included in income
|
4,606 | 2 | ||||||
8,167 | (8,610 | ) | ||||||
Unrealized
(loss) gains on interest rate floors
|
(5,885 | ) | 1,358 | |||||
Other
comprehensive income before income taxes
|
23,352 | 19,165 | ||||||
Tax
effect
|
(898 | ) | 2,901 | |||||
Total
comprehensive income
|
$ | 22,454 | $ | 22,066 |
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||
(in
thousands, except per share data)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Net
income
|
$ | 10,146 | $ | 13,379 | $ | 21,070 | $ | 26,417 | ||||||||
Average
shares outstanding
|
15,908 | 16,103 | 15,903 | 16,124 | ||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Employee
stock options
|
41 | 64 | 38 | 62 | ||||||||||||
Shares
for diluted earnings per share
|
15,949 | 16,167 | 15,941 | 16,186 | ||||||||||||
Basic
earnings per share
|
$ | 0.64 | $ | 0.83 | $ | 1.32 | $ | 1.64 | ||||||||
Diluted
earnings per share
|
$ | 0.64 | $ | 0.83 | $ | 1.32 | $ | 1.63 |
(in
thousands)
|
Total
|
Level
1
|
Level
2
|
Level
3
|
||||||||||||
Assets:
|
||||||||||||||||
Obligations
of states and political subdivisions
|
$ | 45,982 | $ | - | $ | 45,982 | $ | - | ||||||||
Mortgage-backed
securities:
|
||||||||||||||||
US
Government agencies
|
285,172 | - | 285,172 | - | ||||||||||||
Private
label
|
13,851 | - | 13,851 | - | ||||||||||||
Trust
preferred securities
|
52,812 | - | 52,812 | - | ||||||||||||
Corporate
securities
|
20,169 | - | 20,169 | - | ||||||||||||
Marketable
equity securities
|
6,491 | 5,888 | 603 | - | ||||||||||||
Investment
funds
|
64,773 | 64,773 | - | - | ||||||||||||
Derivative
Assets
|
396 | - | 396 | - | ||||||||||||
Previously
Securitized Loans
|
3,223 | - | - | 3,223 | ||||||||||||
Derivative
Liabilities
|
396 | - | 396 | - | ||||||||||||
(in
thousands)
|
Previously
Securitized Loans
|
|||
Beginning
balance, January 1, 2009
|
$ | 4,222 | ||
Principal Receipts and
Recoveries (net)
|
(1,502 | ) | ||
Accretion
|
503 | |||
Transfers into Level
3
|
- | |||
Ending
Balance, June 30, 2009
|
$ | 3,223 |
Fair
Value of Financial Instruments
|
||||||||||||||||
June
30, 2009
|
December
31, 2008
|
|||||||||||||||
(in
thousands)
|
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
||||||||||||
Assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 52,970 | $ | 52,970 | $ | 56,629 | $ | 59,629 | ||||||||
Securities
available-for-sale
|
502,286 | 502,286 | 424,214 | 424,214 | ||||||||||||
Securities
held-to-maturity
|
29,029 | 22,533 | 29,067 | 22,050 | ||||||||||||
Net
loans
|
1,765,360 | 1,808,457 | 1,790,090 | 1,842,888 | ||||||||||||
Liabilities:
|
||||||||||||||||
Deposits
|
2,143,833 | 2,047,399 | 2,041,130 | 2,065,947 | ||||||||||||
Short-term
borrowings
|
136,421 | 136,515 | 194,463 | 194,544 | ||||||||||||
Long-term
debt
|
18,002 | 18,093 | 19,047 | 19,242 |
Six
months ended June 30,
|
||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Loan
portfolio (1):
|
||||||||||||||||||||||||
Residential
real estate
|
$ | 600,929 | $ | 17,325 | 5.81 | % | $ | 600,262 | $ | 18,763 | 6.29 | % | ||||||||||||
Home
equity (2)
|
388,517 | 12,193 | 6.33 | 351,850 | 12,876 | 7.36 | ||||||||||||||||||
Commercial,
financial, and
agriculture (3)
|
754,168 | 21,186 | 5.66 | 704,381 | 23,941 | 6.84 | ||||||||||||||||||
Loans
to depository institutions
|
- | - | - | 2,335 | 35 | 3.01 | ||||||||||||||||||
Installment
loans to individuals
|
48,768 | 2,175 | 8.99 | 51,648 | 2,743 | 10.68 | ||||||||||||||||||
Previously
securitized loans
|
3,645 | 2,125 | 117.56 | 5,895 | 3,050 | 104.05 | ||||||||||||||||||
Total
loans
|
1,796,027 | 55,004 | 6.18 | 1,716,371 | 61,408 | 7.19 | ||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Taxable
|
448,636 | 11,674 | 5.25 | 451,137 | 12,184 | 5.43 | ||||||||||||||||||
Tax-exempt
(4)
|
37,871 | 1,249 | 6.65 | 36,865 | 1,200 | 6.55 | ||||||||||||||||||
Total
securities
|
486,507 | 12,923 | 5.36 | 488,002 | 13,384 | 5.52 | ||||||||||||||||||
Deposits
in depository institutions
|
5,026 | 8 | 0.32 | 8,982 | 116 | 2.60 | ||||||||||||||||||
Total
interest-earning assets
|
2,287,560 | 67,935 | 5.99 | 2,213,355 | 74,908 | 6.81 | ||||||||||||||||||
Cash
and due from banks
|
52,090 | 60,174 | ||||||||||||||||||||||
Bank
premises and equipment
|
61,800 | 55,355 | ||||||||||||||||||||||
Other
assets
|
213,467 | 189,810 | ||||||||||||||||||||||
Less:
allowance for loan losses
|
(22,395 | ) | (18,282 | ) | ||||||||||||||||||||
Total
assets
|
$ | 2,592,522 | $ | 2,500,412 | ||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 423,073 | $ | 909 | 0.43 | % | $ | 411,606 | $ | 1,325 | 0.65 | % | ||||||||||||
Savings
deposits
|
367,595 | 969 | 0.53 | 360,916 | 1,934 | 1.08 | ||||||||||||||||||
Time
deposits
|
1,000,562 | 16,679 | 3.36 | 921,462 | 19,274 | 4.21 | ||||||||||||||||||
Short-term
borrowings
|
136,412 | 264 | 0.39 | 133,790 | 1,808 | 2.72 | ||||||||||||||||||
Long-term
debt
|
19,015 | 485 | 5.14 | 21,953 | 753 | 6.90 | ||||||||||||||||||
Total
interest-bearing liabilities
|
1,946,657 | 19,306 | 2.00 | 1,849,727 | 25,094 | 2.73 | ||||||||||||||||||
Noninterest-bearing
demand deposits
|
329,563 | 317,504 | ||||||||||||||||||||||
Other
liabilities
|
29,506 | 26,991 | ||||||||||||||||||||||
Stockholders’
equity
|
286,796 | 306,190 | ||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$ | 2,592,522 | $ | 2,500,412 | ||||||||||||||||||||
Net
interest income
|
$ | 48,629 | $ | 49,814 | ||||||||||||||||||||
Net
yield on earning assets
|
4.29 | % | 4.53 | % |
(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)
|
Interest
income includes $2,689 and $1,578 from interest rate floors for the six
months ended June 30, 2009 and June 30, 2008,
respectively.
|
(3)
|
Interest
income includes $2,699 and $1,701 from interest rate floors for the six
months ended June 30, 2009 and June 30, 2008,
respectively.
|
(4)
|
Computed
on a fully federal tax-equivalent basis assuming a tax rate of
approximately 35%.
|
Six
months ended June 30,
|
||||||||||||
2009
vs. 2008
|
||||||||||||
Increase
(Decrease)
|
||||||||||||
Due
to Change In:
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
Interest-earning
assets:
|
||||||||||||
Loan
portfolio
|
||||||||||||
Residential
real estate
|
$ | 21 | $ | (1,459 | ) | $ | (1,438 | ) | ||||
Home
equity
|
3,338 | (2,021 | ) | (683 | ) | |||||||
Commercial,
financial, and agriculture
|
1,688 | (4,443 | ) | (2,755 | ) | |||||||
Loans
to depository institutions
|
(35 | ) | - | (35 | ) | |||||||
Installment
loans to individuals
|
(153 | ) | (415 | ) | (568 | ) | ||||||
Previously
securitized loans
|
(1,161 | ) | 236 | (925 | ) | |||||||
Total
loans
|
1,698 | (8,102 | ) | (6,404 | ) | |||||||
Securities:
|
||||||||||||
Taxable
|
(67 | ) | (443 | ) | (510 | ) | ||||||
Tax-exempt
(1)
|
33 | 16 | 49 | |||||||||
Total
securities
|
(34 | ) | (427 | ) | (461 | ) | ||||||
Deposits
in depository institutions
|
(51 | ) | (57 | ) | (108 | ) | ||||||
Total
interest-earning assets
|
$ | 1,613 | $ | (8,586 | ) | $ | (6,973 | ) | ||||
Interest-bearing
liabilities:
|
||||||||||||
Demand
deposits
|
$ | 37 | $ | (453 | ) | $ | (416 | ) | ||||
Savings
deposits
|
36 | (1,001 | ) | (965 | ) | |||||||
Time
deposits
|
1,650 | (4,245 | ) | (2,595 | ) | |||||||
Short-term
borrowings
|
35 | (1,579 | ) | (1,544 | ) | |||||||
Long-term
debt
|
(100 | ) | (168 | ) | (268 | ) | ||||||
Total
interest-bearing liabilities
|
$ | 1,658 | $ | (7,446 | ) | $ | (5,788 | ) | ||||
Net
Interest Income
|
$ | (45 | ) | $ | (1,140 | ) | $ | (1,185 | ) |
Three
months ended June 30,
|
||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Loan
portfolio (5):
|
||||||||||||||||||||||||
Residential
real estate
|
$ | 598,122 | $ | 8,545 | 5.73 | % | $ | 598,924 | $ | 9,348 | 6.28 | % | ||||||||||||
Home
equity (6)
|
390,361 | 6,050 | 6.22 | 360,041 | 6,493 | 7.25 | ||||||||||||||||||
Commercial,
financial, and
Agriculture (7)
|
752,157 | 10,311 | 5.50 | 708,607 | 11,707 | 6.64 | ||||||||||||||||||
Installment
loans to individuals
|
49,956 | 1,057 | 8.49 | 55,667 | 1,398 | 10.10 | ||||||||||||||||||
Previously
securitized loans
|
3,426 | 984 | 115.20 | 5,370 | 1,471 | 110.17 | ||||||||||||||||||
Total
loans
|
1,794,022 | 26,947 | 6.02 | 1,728,609 | 30,417 | 7.08 | ||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Taxable
|
466,341 | 5,612 | 4.83 | 446,625 | 6,120 | 5.51 | ||||||||||||||||||
Tax-exempt
(8)
|
38,179 | 621 | 6.52 | 35,994 | 585 | 6.54 | ||||||||||||||||||
Total
securities
|
504,520 | 6,233 | 4.96 | 482,619 | 6,705 | 5.59 | ||||||||||||||||||
Deposits
in depository institutions
|
5,224 | 3 | 0.23 | 9,266 | 50 | 2.17 | ||||||||||||||||||
Total
interest-earning assets
|
2,303,766 | 33,183 | 5.78 | 2,220,494 | 37,172 | 6.73 | ||||||||||||||||||
Cash
and due from banks
|
51,774 | 54,906 | ||||||||||||||||||||||
Bank
premises and equipment
|
62,775 | 56,002 | ||||||||||||||||||||||
Other
assets
|
215,907 | 193,346 | ||||||||||||||||||||||
Less:
allowance for loan losses
|
(22,229 | ) | (18,726 | ) | ||||||||||||||||||||
Total
assets
|
$ | 2,611,993 | $ | 2,506,022 | ||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 429,381 | $ | 446 | 0.42 | % | $ | 413,467 | $ | 613 | 0.60 | % | ||||||||||||
Savings
deposits
|
374,375 | 463 | 0.50 | 361,244 | 831 | 0.93 | ||||||||||||||||||
Time
deposits
|
1,017,984 | 8,276 | 3.26 | 909,421 | 9,075 | 4.01 | ||||||||||||||||||
Short-term
borrowings
|
125,436 | 111 | 0.35 | 139,787 | 663 | 1.91 | ||||||||||||||||||
Long-term
debt
|
18,998 | 231 | 4.88 | 21,401 | 312 | 5.88 | ||||||||||||||||||
Total
interest-bearing liabilities
|
1,966,174 | 9,527 | 1.94 | 1,845,320 | 11,494 | 2.51 | ||||||||||||||||||
Noninterest-bearing
demand deposits
|
334,735 | 323,123 | ||||||||||||||||||||||
Other
liabilities
|
23,680 | 25,214 | ||||||||||||||||||||||
Stockholders’
equity
|
287,404 | 312,365 | ||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$ | 2,611,993 | $ | 2,506,022 | ||||||||||||||||||||
Net
interest income
|
$ | 23,656 | $ | 25,678 | ||||||||||||||||||||
Net
yield on earning assets
|
4.12 | % | 4.65 | % |
(5)
|
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.
|
(6)
|
Interest
income includes $1,314 and $1,108 from interest rate floors for the three
months ended June 30, 2009 and June 30, 2008,
respectively.
|
(7)
|
Interest
income includes $1,400 and $1,215 from interest rate floors for the three
months ended June 30, 2009 and June 30, 2008,
respectively.
|
(8)
|
Computed
on a fully federal tax-equivalent basis assuming a tax rate of
approximately 35%.
|
Three
months ended June 30,
|
||||||||||||
2009
vs. 2008
|
||||||||||||
Increase
(Decrease)
|
||||||||||||
Due
to Change In:
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
Interest-earning
assets:
|
||||||||||||
Loan
portfolio
|
||||||||||||
Residential
real estate
|
$ | (12 | ) | $ | (791 | ) | $ | (803 | ) | |||
Home
equity
|
542 | (985 | ) | (443 | ) | |||||||
Commercial,
financial, and agriculture
|
714 | (2,110 | ) | (1,396 | ) | |||||||
Installment
loans to individuals
|
(142 | ) | (199 | ) | (341 | ) | ||||||
Previously
securitized loans
|
(528 | ) | 41 | (487 | ) | |||||||
Total
loans
|
574 | (4,044 | ) | (3,470 | ) | |||||||
Securities:
|
||||||||||||
Taxable
|
268 | (776 | ) | (508 | ) | |||||||
Tax-exempt
(1)
|
35 | 1 | 36 | |||||||||
Total
securities
|
303 | (775 | ) | (472 | ) | |||||||
Deposits
in depository institutions
|
(22 | ) | (25 | ) | (47 | ) | ||||||
Total
interest-earning assets
|
$ | 855 | $ | (4,844 | ) | $ | (3,989 | ) | ||||
Interest-bearing
liabilities:
|
||||||||||||
Demand
deposits
|
$ | 23 | $ | (190 | ) | $ | (167 | ) | ||||
Savings
deposits
|
30 | (398 | ) | (368 | ) | |||||||
Time
deposits
|
1,071 | (1,871 | ) | (800 | ) | |||||||
Short-term
borrowings
|
(66 | ) | (485 | ) | (551 | ) | ||||||
Long-term
debt
|
(35 | ) | (47 | ) | (82 | ) | ||||||
Total
interest-bearing liabilities
|
$ | 1,023 | $ | (2,991 | ) | $ | (1,968 | ) | ||||
Net
Interest Income
|
$ | (168 | ) | $ | (1,853 | ) | $ | (2,021 | ) |
Table
five
|
||||||||||||
Loan
Portfolio
|
||||||||||||
June
30,
|
December
31,
|
June
30,
|
||||||||||
(in
thousands)
|
2009
|
2008
|
2008
|
|||||||||
Commercial,
financial, and agricultural
|
$ | 241,713 | $ | 271,609 | $ | 258,743 | ||||||
Real
Estate:
|
||||||||||||
Construction:
|
||||||||||||
Commercial
|
44,300 | 55,836 | 65,430 | |||||||||
Consumer
|
2,246 | 4,971 | 6,087 | |||||||||
Land:
|
||||||||||||
Commercial
|
3,125 | 3,179 | 3,199 | |||||||||
Consumer
|
11,399 | 12,948 | 16,490 | |||||||||
Commercial
mortgages
|
458,748 | 437,631 | 387,824 | |||||||||
1-4
family residential mortgages
|
583,280 | 594,043 | 590,,099 | |||||||||
Home
equity
|
392,751 | 384,320 | 371,537 | |||||||||
Total
real estate
|
1,495,849 | 1,492,928 | 1,440,666 | |||||||||
Installment
loans to individuals
|
45,550 | 43,585 | 45,385 | |||||||||
Previously
securitized loans
|
3,223 | 4,222 | 5,253 | |||||||||
Total
loans
|
$ | 1,786,335 | $ | 1,812,344 | $ | 1,750,047 | ||||||
Table
five
|
||||||||||||
Analysis
of the Allowance for Loan Losses
|
||||||||||||
Six
months ended June 30,
|
Year
ended December 31,
|
|||||||||||
(in
thousands)
|
2009
|
2008
|
2008
|
|||||||||
Balance
at beginning of period
|
$ | 22,254 | $ | 17,581 | $ | 17,581 | ||||||
Charge-offs:
|
||||||||||||
Commercial,
financial, and agricultural
|
(3,811 | ) | (1,428 | ) | (3,064 | ) | ||||||
Real
estate-mortgage
|
(901 | ) | (464 | ) | (1,590 | ) | ||||||
Installment
loans to individuals
|
(142 | ) | (152 | ) | (243 | ) | ||||||
Overdraft
deposit accounts
|
(1,354 | ) | (1,589 | ) | (3,151 | ) | ||||||
Total
charge-offs
|
(6,208 | ) | (3,633 | ) | (8,048 | ) | ||||||
Recoveries:
|
||||||||||||
Commercial,
financial, and agricultural
|
120 | 54 | 38 | |||||||||
Real
estate-mortgage
|
72 | 75 | 223 | |||||||||
Installment
loans to individuals
|
90 | 180 | 296 | |||||||||
Overdraft
deposit accounts
|
847 | 969 | 1,741 | |||||||||
Total
recoveries
|
1,129 | 1,278 | 2,298 | |||||||||
Net
charge-offs
|
(5,079 | ) | (2,355 | ) | (5,750 | ) | ||||||
Provision
for loan losses
|
3,800 | 2,733 | 10,423 | |||||||||
Balance
at end of period
|
$ | 20,975 | $ | 17,959 | $ | 22,254 | ||||||
As
a Percent of Average Total Loans:
|
||||||||||||
Net
charge-offs (annualized)
|
(0.57 | )% | (0.27 | )% | (0.33 | )% | ||||||
Provision
for loan losses (annualized)
|
0.42 | % | 0.32 | % | 0.60 | % | ||||||
As
a Percent of Non-Performing Loans:
|
||||||||||||
Allowance
for loan losses
|
96.80 | % | 122.89 | % | 86.07 | % |
Table
six
|
||||||||||||
Non-Performing
Assets
|
||||||||||||
As
of June 30,
|
As
of
December
31,
|
|||||||||||
(in
thousands)
|
2009
|
2008
|
2008
|
|||||||||
Non-accrual
loans
|
$ | 20,956 | $ | 14,018 | $ | 25,224 | ||||||
Accruing
loans past due 90 days or more
|
680 | 431 | 623 | |||||||||
Previously
securitized loans past due 90 days or more
|
32 | 165 | 10 | |||||||||
Total
non-performing loans
|
21,668 | 14,614 | 25,857 | |||||||||
Other
real estate, excluding property associated withpreviously securitized
loans
|
9,840 | 6,164 | 3,469 | |||||||||
Other
real estate associated with previouslysecuritized loans
|
189 | 321 | 400 | |||||||||
Total other real estate
owned
|
10,029 | 6,485 | 3,869 | |||||||||
Total non-performing
assets
|
$ | 31,697 | $ | 21,099 | $ | 29,726 |
Table
seven
|
||||||||||||
Allocation
of the Allowance For Loan Losses
|
||||||||||||
As
of June 30,
|
As
of
December
31,
|
|||||||||||
(in
thousands)
|
2009
|
2008
|
2008
|
|||||||||
Commercial,
financial and agricultural
|
$ | 14,225 | $ | 11,148 | $ | 15,128 | ||||||
Real
estate-mortgage
|
4,794 | 4,177 | 4,583 | |||||||||
Installment
loans to individuals
|
197 | 265 | 190 | |||||||||
Overdraft
deposit accounts
|
1,759 | 2,369 | 2,353 | |||||||||
Allowance
for Loan Losses
|
$ | 20,975 | $ | 17,959 | $ | 22,254 |
Three
months
ended
June 30
|
Six
months ended
June
30
|
|||||||||||||||
(in
thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Principal
receipts
|
$ | 951 | $ | 1,515 | $ | 1,919 | $ | 3,195 | ||||||||
Interest
income receipts
|
545 | 741 | 1,132 | 1,525 | ||||||||||||
Total
cash receipts
|
$ | 1,496 | $ | 2,256 | $ | 3,051 | $ | 4,720 |
As
of:
|
Estimated
Balance:
|
December
31, 2009
|
$2.8
million
|
December
31, 2010
|
2.4
million
|
December
31, 2011
|
2.0
million
|
December
31, 2012
|
1.6
million
|
Immediate
Basis
Point Change
in
Interest Rates
|
Implied
Federal Funds Rate Associated with Change in Interest
Rates
|
Estimated
Increase
(Decrease)
in
Net
Income Over 12 Months
|
Estimated
Increase
(Decrease)
in
Economic
Value of
Equity
|
|||||||||||
June 30, 2009:
|
||||||||||||||
+300 | 3.25 | % | +9.7 | % | +12.5 | % | ||||||||
+200 | 2.25 | +5.9 | +8.1 | |||||||||||
+100 | 1.25 | +2.2 | +3.1 | |||||||||||
December 31, 2008:
|
||||||||||||||
+300 | 3.25 | % | +9.2 | % | +7.0 | % | ||||||||
+200 | 2.25 | +6.3 | +4.4 | |||||||||||
+100 | 1.25 | +3.2 | +1.1 |
Actual
|
||||||||||||||||
Well-
|
June
30,
|
December
31,
|
||||||||||||||
Minimum
|
Capitalized
|
2009
|
2008
|
|||||||||||||
City
Holding:
|
||||||||||||||||
Total
|
8.0 | % | 10.0 | % | 13.7 | % | 13.4 | % | ||||||||
Tier
I Risk-based
|
4.0 | 6.0 | 12.6 | 12.3 | ||||||||||||
Tier
I Leverage
|
4.0 | 5.0 | 9.5 | 9.5 | ||||||||||||
City
National:
|
||||||||||||||||
Total
|
8.0 | % | 10.0 | % | 11.9 | % | 11.5 | % | ||||||||
Tier
I Risk-based
|
4.0 | 6.0 | 10.7 | 10.3 | ||||||||||||
Tier
I Leverage
|
4.0 | 5.0 | 8.1 | 8.0 |
Item
1.
|
||||||||||||||
The
Company is engaged in various legal actions that it deems to be in the
ordinary course of business. The Company believes that it has adequately
provided for probable costs of current litigation. As these legal actions
are resolved, however, the Company could realize positive and/or negative
impact to its financial performance in the period in which these legal
actions are ultimately decided. There can be no assurance that current
actions will have immaterial results, either positive or negative, or that
no material actions may be presented in the future.
|
||||||||||||||
Item
1A.
|
||||||||||||||
There
have been no material changes to the factors disclosed in Item 1A. Risk
Factors in our Annual Report on Form 10-K for the year ended December 31,
2008.
|
||||||||||||||
Item
2.
|
None.
|
|||||||||||||
Item
3.
|
None.
|
|||||||||||||
Item
4.
|
||||||||||||||
The
Company held its Annual Meeting of Shareholders on April 29, 2009 at which
time shareholders were asked on consider the following two proposals,
which were more fully described in the Company’s definite proxy statement
on Schedule 14A filed with the Securities and Exchange Commission on March
27, 2009:
1. To
elect four Class I directors to serve for a term of three
years.
2. To
ratify the Board of Director’s appointment of Ernst & Young LLP as the
independent registered public accounting firm for the Company for
2009.
The
vote tabulation was as follows:
1. Election
of four Class I directors to the Board of Directors:
|
||||||||||||||
Director Nominee
|
Votes For
|
Votes Withheld
|
||||||||||||
John
R. Elliot
|
12,860,580
|
173,375
|
||||||||||||
David
W. Hambrick
|
12,805,053
|
228,902
|
||||||||||||
James
L. Rossi
|
12,869,924
|
164,031
|
||||||||||||
Mary
E. Hooten Williams
|
12,876,393
|
157,562
|
||||||||||||
There were no broker non-votes in the election of directors. | ||||||||||||||
2. Ratification
of the Board of Directors appointment of Ernst & Young LLP as
independent registered public accounting firm for City Holding Company for
2009:
|
||||||||||||||
Votes For
|
Against
|
Abstentions
|
||||||||||||
12,886,199
|
91,469
|
56,287
|
||||||||||||
Item
5.
|
None.
|
|||||||||||||
Item
6.
|
||||||||||||||
(a)
Exhibits
|
||||||||||||||
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Charles R.
Hageboeck
|
||||||||||||||
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for David L.
Bumgarner
|
||||||||||||||
Certification
pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 for Charles R. Hageboeck
|
||||||||||||||
Certification
pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 for David L. Bumgarner
|
City
Holding Company
|
|
(Registrant)
|
|
/s/
Charles R. Hageboeck
|
|
Charles
R. Hageboeck
|
|
President
and Chief Executive Officer
|
|
(Principal
Executive Officer)
|
|
/s/
David L. Bumgarner
|
|
David
L. Bumgarner
|
|
Senior
Vice President, Chief Financial Officer and Principal Accounting
Officer
|
|
(Principal
Financial Officer)
|
|