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)
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(Zip Code)
|
Title of Each Class:
|
Trading Symbol (s)
|
Name of Each Exchange on Which Registered:
|
Common Stock, $2.50 par value
|
CHCO
|
NASDAQ Global Select Market
|
Yes
|
[X]
|
No
|
[ ]
|
Yes
|
[ ]
|
No
|
[ X ]
|
Yes
|
[X]
|
No
|
[ ]
|
Yes
|
[X]
|
No
|
[ ]
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|
|
|
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
Yes
|
☐
|
No
|
☒
|
•
|
Commercial Banking - City National offers a full range of commercial banking services to corporations and other business customers. Loans are provided for a variety of business purposes, including financing for commercial and industrial projects, income producing commercial real estate, owner-occupied real estate and construction and land development. City National also provides deposit services for commercial customers, including treasury management, lockbox and other cash management services. City National provides merchant credit card services through an agreement with a third party vendor.
|
•
|
Consumer Banking - City National provides banking services to consumers, including checking, savings and money market accounts as well as certificates of deposit and individual retirement accounts. In addition, City National provides consumers with installment and real estate loans and lines of credit. City National also offers credit cards through an agreement with a third party vendor.
|
•
|
Mortgage Banking - City National provides mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government insured mortgages, secondary marketing and mortgage servicing.
|
•
|
Wealth Management and Trust Services - City National offers specialized services and expertise in the areas of wealth management, trust, investment and custodial services for commercial and individual customers. These services include the administration of personal trusts and estates, as well as the management of investment accounts for individuals, employee benefit plans and charitable foundations. City National also provides corporate trust and institutional custody, financial and estate planning and retirement plan services.
|
•
|
Centralize responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau, which has rule making authority for a wide range of consumer protection laws that apply to all banks and has broad powers to supervise and enforce consumer protection laws;
|
•
|
Require the OCC to seek to make its capital requirements for national banks countercyclical so that capital requirements increase in times of economic expansion and decrease in times of economic contraction;
|
•
|
Require financial holding companies, such as the Company, to be well-capitalized and well-managed;
|
•
|
Provide for an increase in the minimum reserve ratio for the FDIC deposit insurance fund from 1.15% to 1.35% and changes in the basis for determining FDIC premiums from deposits to assets;
|
•
|
Repeal the federal prohibitions on the payment of interest on demand deposits;
|
•
|
Amend the Electronic Fund Transfer Act ("EFTA");
|
•
|
Enhance the requirements for certain transactions with affiliates under the Federal Reserve Act;
|
•
|
Strengthen the existing limits on a depository institution’s credit exposure to one borrower;
|
•
|
Strengthen loan restrictions to insiders; and
|
•
|
Increase the authority of the Federal Reserve Board to examine the Company and its non-bank subsidiaries.
|
•
|
Simplifying regulatory capital requirements by providing that banks with less than $10 billion in total consolidated assets that meet a to-be-developed community bank leverage ratio of tangible equity to average consolidated assets between eight and ten percent will be deemed to be in compliance with risk-based capital and leverage requirements.
|
•
|
Changing how federal financial institution regulators classify certain municipal securities assets under the liquidity coverage ratio rule;
|
•
|
Exempting certain reciprocal deposits from treatment as brokered deposits under the FDIC's brokered deposits rule;
|
•
|
Exempting banks with less than $10 billion in total consolidated assets from certain provisions under the Volcker Rule; and
|
•
|
Authorizing new banking procedures to better facilitate online transactions.
|
December 31, 2019
|
Actual
|
|
Minimum Required - Basel III
|
|
Required to be Considered Well Capitalized
|
|||||||||||||||
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
$
|
532,640
|
|
|
16.0
|
%
|
|
$
|
232,358
|
|
|
7.0
|
%
|
|
$
|
215,761
|
|
|
6.5
|
%
|
City National Bank
|
459,006
|
|
|
13.9
|
%
|
|
230,808
|
|
|
7.0
|
%
|
|
214,322
|
|
|
6.5
|
%
|
|||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
536,640
|
|
|
16.2
|
%
|
|
282,150
|
|
|
8.5
|
%
|
|
265,552
|
|
|
8.0
|
%
|
|||
City National Bank
|
459,006
|
|
|
13.9
|
%
|
|
280,267
|
|
|
8.5
|
%
|
|
263,781
|
|
|
8.0
|
%
|
|||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
548,291
|
|
|
16.5
|
%
|
|
348,538
|
|
|
10.5
|
%
|
|
331,941
|
|
|
10.0
|
%
|
|||
City National Bank
|
470,656
|
|
|
14.3
|
%
|
|
346,213
|
|
|
10.5
|
%
|
|
329,726
|
|
|
10.0
|
%
|
|||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
536,640
|
|
|
11.0
|
%
|
|
195,558
|
|
|
4.0
|
%
|
|
244,448
|
|
|
5.0
|
%
|
|||
City National Bank
|
459,006
|
|
|
9.5
|
%
|
|
193,074
|
|
|
4.0
|
%
|
|
241,342
|
|
|
5.0
|
%
|
December 31, 2018
|
Actual
|
|
Minimum Required - Basel III Phase-In Schedule
|
|
Minimum Required - Basel III Fully Phased-In (*)
|
|
Required to be Considered Well Capitalized
|
||||||||||||||||||||
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CET 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
$
|
492,526
|
|
|
15.1
|
%
|
|
$
|
208,294
|
|
|
6.375
|
%
|
|
$
|
228,715
|
|
|
7.0
|
%
|
|
$
|
212,378
|
|
|
6.5
|
%
|
City National Bank
|
423,099
|
|
|
13.1
|
%
|
|
206,676
|
|
|
6.375
|
%
|
|
226,938
|
|
|
7.0
|
%
|
|
210,728
|
|
|
6.5
|
%
|
||||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
496,526
|
|
|
15.2
|
%
|
|
257,304
|
|
|
7.875
|
%
|
|
277,725
|
|
|
8.5
|
%
|
|
261,389
|
|
|
8.0
|
%
|
||||
City National Bank
|
423,099
|
|
|
13.1
|
%
|
|
255,306
|
|
|
7.875
|
%
|
|
275,568
|
|
|
8.5
|
%
|
|
259,358
|
|
|
8.0
|
%
|
||||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
512,801
|
|
|
15.7
|
%
|
|
322,651
|
|
|
9.875
|
%
|
|
343,072
|
|
|
10.5
|
%
|
|
326,736
|
|
|
10.0
|
%
|
||||
City National Bank
|
439,374
|
|
|
13.6
|
%
|
|
320,145
|
|
|
9.875
|
%
|
|
340,408
|
|
|
10.5
|
%
|
|
324,198
|
|
|
10.0
|
%
|
||||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
496,526
|
|
|
11.4
|
%
|
|
174,833
|
|
|
4.000
|
%
|
|
174,833
|
|
|
4.0
|
%
|
|
218,542
|
|
|
5.0
|
%
|
||||
City National Bank
|
423,099
|
|
|
9.8
|
%
|
|
172,594
|
|
|
4.000
|
%
|
|
172,594
|
|
|
4.0
|
%
|
|
215,742
|
|
|
5.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
FDIC insurance expense
|
$
|
638
|
|
$
|
1,251
|
|
$
|
1,348
|
|
Name
|
Age
|
Positions Held with Registrant
|
Charles R. Hageboeck, Ph.D.
|
57
|
President and Chief Executive Officer, City Holding Company and City National Bank, since February 1, 2005.
|
Craig G. Stilwell
|
64
|
Executive Vice President of Retail Banking, City Holding Company and City National Bank, since February 2005.
|
John A. DeRito
|
69
|
Executive Vice President of Commercial Banking, City Holding Company and City National Bank, since June 2004.
|
David L. Bumgarner
|
54
|
Executive Vice President and Chief Financial Officer, City Holding Company and City National Bank, since February 2005.
|
Jeffrey D. Legge
|
55
|
Executive Vice President, Chief Administration Officer and Chief Information Officer, City Holding Company and City National Bank, since December 2005.
|
•
|
Loan delinquencies may increase;
|
•
|
Problem assets and foreclosures may increase;
|
•
|
Demand for City National's products and services may decline; and
|
•
|
Collateral (including real estate) that secures loans made by City National may decline in value, in turn reducing customers’ borrowing power and making existing loans less secure.
|
•
|
local, regional and national banks;
|
•
|
savings and loans associations;
|
•
|
Internet banks;
|
•
|
credit unions;
|
•
|
mutual funds;
|
•
|
mortgage banking firms;
|
•
|
finance companies;
|
•
|
financial technology ("fin-tech") companies;
|
•
|
brokerage firms;
|
•
|
investment advisory and wealth management firms;
|
•
|
investment banking firms; and
|
•
|
other entities.
|
Plan Category
|
Number of Stock Options to be Issued Upon Exercise of Outstanding Awards
(a)
|
Weighted-average exercise price of outstanding awards (b)
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
|
||||
Plans approved by shareholders
|
46,251
|
|
$
|
52.74
|
|
450,632
|
|
Plans not approved by shareholders
|
—
|
|
—
|
|
—
|
|
|
Total
|
46,251
|
|
$
|
52.74
|
|
450,632
|
|
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
City Holding Company
|
$100.00
|
$101.59
|
$156.11
|
$159.94
|
$164.50
|
$205.35
|
NASDAQ Composite Index
|
$100.00
|
$106.96
|
$116.45
|
$150.96
|
$146.67
|
$200.49
|
KBW Nasdaq Bank Index
|
$100.00
|
$100.49
|
$129.14
|
$153.15
|
$126.02
|
$171.55
|
|
2019
|
2018(1)
|
2017
|
2016
|
2015(2)
|
||||||||||
Summary of Operations
|
|
|
|
|
|
||||||||||
Total interest income
|
$
|
197,700
|
|
$
|
163,901
|
|
$
|
142,930
|
|
$
|
132,152
|
|
$
|
127,074
|
|
Total interest expense
|
36,339
|
|
25,692
|
|
16,805
|
|
13,207
|
|
11,830
|
|
|||||
Net interest income
|
161,361
|
|
138,209
|
|
126,125
|
|
118,945
|
|
115,244
|
|
|||||
(Recovery of) provision for loan losses
|
(1,250
|
)
|
(2,310
|
)
|
3,006
|
|
4,395
|
|
6,988
|
|
|||||
Total non-interest income
|
68,490
|
|
60,564
|
|
63,607
|
|
58,825
|
|
67,206
|
|
|||||
Total non-interest expenses
|
117,614
|
|
113,066
|
|
95,981
|
|
96,164
|
|
92,951
|
|
|||||
Income before income taxes
|
113,487
|
|
88,017
|
|
90,745
|
|
77,211
|
|
82,511
|
|
|||||
Income tax expense
|
24,135
|
|
18,015
|
|
36,435
|
|
25,083
|
|
28,414
|
|
|||||
Net income available to common shareholders
|
89,352
|
|
70,002
|
|
54,310
|
|
52,128
|
|
54,097
|
|
|||||
|
|
|
|
|
|
||||||||||
Per Share Data
|
|
|
|
|
|
||||||||||
Net income basic
|
$
|
5.43
|
|
$
|
4.50
|
|
$
|
3.49
|
|
$
|
3.46
|
|
$
|
3.54
|
|
Net income diluted
|
5.42
|
|
4.49
|
|
3.48
|
|
3.45
|
|
3.53
|
|
|||||
Cash dividends declared
|
2.20
|
|
1.98
|
|
1.78
|
|
1.72
|
|
1.68
|
|
|||||
Book value per share
|
40.36
|
|
36.29
|
|
32.17
|
|
29.25
|
|
27.62
|
|
|||||
|
|
|
|
|
|
||||||||||
Selected Average Balances
|
|
|
|
|
|
||||||||||
Total loans
|
$
|
3,567,143
|
|
$
|
3,168,827
|
|
$
|
3,082,448
|
|
$
|
2,920,837
|
|
$
|
2,691,304
|
|
Securities
|
859,575
|
|
650,697
|
|
582,124
|
|
495,206
|
|
383,685
|
|
|||||
Interest-earning assets
|
4,511,544
|
|
3,942,285
|
|
3,691,714
|
|
3,426,158
|
|
3,084,722
|
|
|||||
Deposits
|
4,042,956
|
|
3,460,306
|
|
3,298,385
|
|
3,166,817
|
|
2,947,543
|
|
|||||
Long-term debt
|
4,054
|
|
16,053
|
|
16,495
|
|
16,495
|
|
16,495
|
|
|||||
Total shareholders’ equity
|
637,915
|
|
514,083
|
|
492,668
|
|
431,031
|
|
415,051
|
|
|||||
Total assets
|
4,953,727
|
|
4,303,364
|
|
4,079,674
|
|
3,835,081
|
|
3,564,730
|
|
|||||
|
|
|
|
|
|
||||||||||
Selected Year-End Balances
|
|
|
|
|
|
||||||||||
Net loans
|
$
|
3,604,510
|
|
$
|
3,571,642
|
|
$
|
3,108,574
|
|
$
|
3,026,496
|
|
$
|
2,843,283
|
|
Securities
|
887,632
|
|
812,891
|
|
628,985
|
|
539,604
|
|
471,318
|
|
|||||
Interest-earning assets
|
4,555,217
|
|
4,468,474
|
|
3,784,453
|
|
3,611.706
|
|
3,345,136
|
|
|||||
Deposits
|
4,075,894
|
|
3,975,559
|
|
3,315,634
|
|
3,231,653
|
|
3,083,975
|
|
|||||
Long-term debt
|
4,056
|
|
4,053
|
|
16,495
|
|
16,495
|
|
16,495
|
|
|||||
Total shareholders’ equity
|
657,983
|
|
600,764
|
|
502,507
|
|
442,438
|
|
419,272
|
|
|||||
Total assets
|
5,018,756
|
|
4,899,012
|
|
4,132,281
|
|
3,984,403
|
|
3,714,059
|
|
|||||
|
|
|
|
|
|
||||||||||
Performance Ratios
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.80
|
%
|
1.63
|
%
|
1.33
|
%
|
1.36
|
%
|
1.52
|
%
|
|||||
Return on average equity
|
14.0
|
|
13.6
|
|
11.0
|
|
12.1
|
|
13.0
|
|
|||||
Return on average tangible common equity
|
17.3
|
|
16.2
|
|
13.1
|
|
14.8
|
|
15.8
|
|
|||||
Net interest margin
|
3.59
|
|
3.52
|
|
3.46
|
|
3.50
|
|
3.76
|
|
|||||
Efficiency ratio
|
50.0
|
|
50.0
|
|
51.5
|
|
54.8
|
|
53.7
|
|
|||||
Dividend payout ratio
|
40.6
|
|
44.0
|
|
51.0
|
|
49.7
|
|
47.5
|
|
|||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
Description of Information
|
|
Page
Reference
|
||
1.
|
Distribution of Assets, Liabilities and Stockholders'
|
|
||
|
Equity; Interest Rates and Interest Differential
|
|
||
|
a.
|
Average Balance Sheets
|
||
|
b.
|
Analysis of Net Interest Earnings
|
||
|
c.
|
Rate Volume Analysis of Changes in Interest Income and Expense
|
||
|
|
|
|
|
2.
|
Investment Portfolio
|
|
||
|
a.
|
Book Value of Investments
|
||
|
b.
|
Maturity Schedule of Investments
|
||
|
c.
|
Securities of Issuers Exceeding 10% of Stockholders’ Equity
|
||
|
|
|
|
|
3.
|
Loan Portfolio
|
|
||
|
a.
|
Types of Loans
|
||
|
b.
|
Maturities and Sensitivity to Changes in Interest Rates
|
||
|
c.
|
Risk Elements
|
||
|
d.
|
Other Interest Bearing Assets
|
None
|
|
|
|
|
|
|
4.
|
Summary of Loan Loss Experience
|
|||
|
|
|
||
5.
|
Deposits
|
|
|
|
|
a.
|
Breakdown of Deposits by Categories, Average Balance and Average Rate Paid
|
||
|
b.
|
Maturity Schedule of Time Certificates of Deposit and Other Time Deposits of $100,000 or More
|
||
|
|
|
|
|
6.
|
Return on Equity and Assets
|
|||
|
|
|
|
|
7.
|
Short-term Borrowings
|
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Net income available to common shareholders (in thousands)
|
$
|
89,352
|
|
$
|
70,002
|
|
$
|
54,310
|
|
Earnings per common share, basic
|
$
|
5.43
|
|
$
|
4.50
|
|
$
|
3.49
|
|
Earnings per common share, diluted
|
$
|
5.42
|
|
$
|
4.49
|
|
$
|
3.48
|
|
ROA*
|
1.80
|
%
|
1.63
|
%
|
1.33
|
%
|
|||
ROE*
|
14.0
|
%
|
13.6
|
%
|
11.0
|
%
|
|||
ROATCE*
|
17.3
|
%
|
16.2
|
%
|
13.1
|
%
|
|
December 31,
|
|
|
||||||||
|
2019
|
2018
|
$ Change
|
% Change
|
|||||||
|
|
|
|
|
|||||||
Investment securities
|
$
|
887.6
|
|
$
|
812.9
|
|
$
|
74.7
|
|
9.2
|
%
|
Gross loans
|
3,616.1
|
|
3,587.6
|
|
28.5
|
|
0.8
|
|
|||
|
|
|
|
|
|||||||
Total deposits
|
4,075.9
|
|
3,975.6
|
|
100.3
|
|
2.5
|
|
|||
Shareholders' equity
|
658.0
|
|
600.8
|
|
57.2
|
|
9.5
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||
|
Average Balance
|
Interest
|
Yield/
Rate
|
|
Average Balance
|
Interest
|
Yield/
Rate
|
|
Average Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loan portfolio(1):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential real estate(2),(3)
|
$
|
1,791,636
|
|
$
|
81,603
|
|
4.55
|
%
|
|
$
|
1,629,950
|
|
$
|
69,765
|
|
4.28
|
%
|
|
$
|
1,598,579
|
|
$
|
63,649
|
|
3.98
|
%
|
Commercial, financial, and agriculture(3)
|
1,717,381
|
|
84,167
|
|
4.90
|
|
|
1,501,667
|
|
68,981
|
|
4.59
|
|
|
1,450,144
|
|
58,243
|
|
4.02
|
|
||||||
Installment loans to individuals(3),(4)
|
58,126
|
|
3,559
|
|
6.12
|
|
|
37,210
|
|
2,349
|
|
6.31
|
|
|
33,725
|
|
2,514
|
|
7.45
|
|
||||||
Previously securitized loans(5)
|
—
|
|
684
|
|
—
|
|
|
—
|
|
960
|
|
—
|
|
|
—
|
|
1,346
|
|
—
|
|
||||||
Total loans
|
3,567,143
|
|
170,013
|
|
4.77
|
|
|
3,168,827
|
|
142,055
|
|
4.48
|
|
|
3,082,448
|
|
125,752
|
|
4.08
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
761,358
|
|
23,389
|
|
3.07
|
|
|
559,125
|
|
17,337
|
|
3.10
|
|
|
492,783
|
|
14,387
|
|
2.92
|
|
||||||
Tax-exempt(6)
|
98,217
|
|
3,756
|
|
3.82
|
|
|
91,572
|
|
3,598
|
|
3.93
|
|
|
89,341
|
|
4,163
|
|
4.66
|
|
||||||
Total securities
|
859,575
|
|
27,145
|
|
3.16
|
|
|
650,697
|
|
20,935
|
|
3.22
|
|
|
582,124
|
|
18,550
|
|
3.19
|
|
||||||
Deposits in depository institutions
|
84,826
|
|
1,332
|
|
1.57
|
|
|
122,761
|
|
1,666
|
|
1.36
|
|
|
27,142
|
|
85
|
|
0.31
|
|
||||||
Total interest-earning assets
|
4,511,544
|
|
198,490
|
|
4.40
|
|
|
3,942,285
|
|
164,656
|
|
4.18
|
|
|
3,691,714
|
|
144,387
|
|
3.91
|
|
||||||
Cash and due from banks
|
65,664
|
|
|
|
|
47,562
|
|
|
|
|
85,473
|
|
|
|
||||||||||||
Bank premises and equipment
|
78,103
|
|
|
|
|
73,196
|
|
|
|
|
73,540
|
|
|
|
||||||||||||
Goodwill and intangible assets
|
121,460
|
|
|
|
|
82,117
|
|
|
|
|
78,881
|
|
|
|
||||||||||||
Other assets
|
191,422
|
|
|
|
|
176,110
|
|
|
|
|
170,312
|
|
|
|
||||||||||||
Less: allowance for loan losses
|
(14,466
|
)
|
|
|
|
(17,906
|
)
|
|
|
|
(20,246
|
)
|
|
|
||||||||||||
Total assets
|
$
|
4,953,727
|
|
|
|
|
$
|
4,303,364
|
|
|
|
|
$
|
4,079,674
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing demand deposits
|
$
|
878,716
|
|
3,490
|
|
0.40
|
%
|
|
$
|
792,765
|
|
2,114
|
|
0.27
|
%
|
|
$
|
705,412
|
|
643
|
|
0.09
|
%
|
|||
Savings deposits
|
977,327
|
|
4,405
|
|
0.45
|
|
|
820,474
|
|
2,133
|
|
0.26
|
|
|
832,512
|
|
1,311
|
|
0.16
|
|
||||||
Time deposits(3)
|
1,368,752
|
|
24,771
|
|
1.81
|
|
|
1,142,629
|
|
17,150
|
|
1.50
|
|
|
1,067,181
|
|
12,872
|
|
1.21
|
|
||||||
Short-term borrowings
|
211,452
|
|
3,491
|
|
1.65
|
|
|
265,157
|
|
3,415
|
|
1.29
|
|
|
230,529
|
|
1,214
|
|
0.53
|
|
||||||
Long-term debt
|
4,054
|
|
182
|
|
4.49
|
|
|
16,053
|
|
880
|
|
5.48
|
|
|
16,495
|
|
765
|
|
4.64
|
|
||||||
Total interest-bearing liabilities
|
3,440,301
|
|
36,339
|
|
1.06
|
|
|
3,037,078
|
|
25,692
|
|
0.85
|
|
|
2,852,129
|
|
16,805
|
|
0.59
|
|
||||||
Noninterest-bearing demand deposits
|
818,161
|
|
|
|
|
704,438
|
|
|
|
|
693,280
|
|
|
|
||||||||||||
Other liabilities
|
57,350
|
|
|
|
|
47,765
|
|
|
|
|
41,597
|
|
|
|
||||||||||||
Total shareholders’ equity
|
637,915
|
|
|
|
|
514,083
|
|
|
|
|
492,668
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
4,953,727
|
|
|
|
|
$
|
4,303,364
|
|
|
|
|
$
|
4,079,674
|
|
|
|
|||||||||
Net interest income
|
|
$
|
162,151
|
|
|
|
|
$
|
138,964
|
|
|
|
|
$
|
127,582
|
|
|
|||||||||
Net yield on earning assets
|
|
|
3.59
|
%
|
|
|
|
3.52
|
%
|
|
|
|
3.46
|
%
|
1.
|
For purposes of this table, non-accruing loans have been included in average balances and the following loan fees (in thousands) have been included in interest income:
|
|
2019
|
2018
|
2017
|
||||||
Loan fees
|
$
|
863
|
|
$
|
1,827
|
|
$
|
847
|
|
3.
|
Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the Company's acquisitions:
|
|
2019
|
2018
|
2017
|
||||||
Residential real estate
|
$
|
323
|
|
$
|
407
|
|
$
|
530
|
|
Commercial, financial, and agriculture
|
2,366
|
|
994
|
|
1,345
|
|
|||
Installment loans to individuals
|
47
|
|
19
|
|
44
|
|
|||
Time deposits
|
843
|
|
—
|
|
16
|
|
|||
Total
|
$
|
3,579
|
|
$
|
1,420
|
|
$
|
1,935
|
|
6.
|
Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21% for the years ended December 31, 2019 and 2018, and 35% for the year ended December 31, 2017.
|
|
2019 vs. 2018
Increase (Decrease)
Due to Change In:
|
2018 vs. 2017
Increase (Decrease)
Due to Change In:
|
||||||||||||||||
|
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||||||||
Loan portfolio
|
|
|
|
|
|
|
||||||||||||
Residential real estate
|
$
|
6,920
|
|
$
|
4,918
|
|
$
|
11,838
|
|
$
|
1,249
|
|
$
|
4,867
|
|
$
|
6,116
|
|
Commercial, financial, and agriculture
|
9,909
|
|
5,277
|
|
15,186
|
|
2,078
|
|
8,421
|
|
10,499
|
|
||||||
Installment loans to individuals
|
1,320
|
|
(110
|
)
|
1,210
|
|
235
|
|
(161
|
)
|
74
|
|
||||||
Previously securitized loans
|
—
|
|
(276
|
)
|
(276
|
)
|
—
|
|
(386
|
)
|
(386
|
)
|
||||||
Total loans
|
18,149
|
|
9,809
|
|
27,958
|
|
3,562
|
|
12,741
|
|
16,303
|
|
||||||
Securities:
|
|
|
|
|
|
|
||||||||||||
Taxable
|
6,271
|
|
(219
|
)
|
6,052
|
|
1,937
|
|
1,013
|
|
2,950
|
|
||||||
Tax-exempt(1)
|
261
|
|
(103
|
)
|
158
|
|
104
|
|
(669
|
)
|
(565
|
)
|
||||||
Total securities
|
6,532
|
|
(322
|
)
|
6,210
|
|
2,041
|
|
344
|
|
2,385
|
|
||||||
Deposits in depository institutions
|
(396
|
)
|
62
|
|
(334
|
)
|
299
|
|
1,282
|
|
1,581
|
|
||||||
Total interest-earning assets
|
$
|
24,285
|
|
$
|
9,549
|
|
$
|
33,834
|
|
$
|
5,902
|
|
$
|
14,367
|
|
$
|
20,269
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
||||||||||||
Interest-bearing demand deposits
|
$
|
229
|
|
$
|
1,147
|
|
$
|
1,376
|
|
$
|
80
|
|
$
|
1,391
|
|
$
|
1,471
|
|
Savings deposits
|
408
|
|
1,864
|
|
2,272
|
|
(19
|
)
|
841
|
|
822
|
|
||||||
Time deposits
|
3,394
|
|
4,227
|
|
7,621
|
|
910
|
|
3,367
|
|
4,277
|
|
||||||
Short-term borrowings
|
(692
|
)
|
768
|
|
76
|
|
182
|
|
2,019
|
|
2,201
|
|
||||||
Long-term debt
|
(658
|
)
|
(40
|
)
|
(698
|
)
|
(20
|
)
|
135
|
|
115
|
|
||||||
Total interest-bearing liabilities
|
2,681
|
|
7,966
|
|
10,647
|
|
1,133
|
|
7,753
|
|
8,886
|
|
||||||
Net Interest Income
|
$
|
21,604
|
|
$
|
1,583
|
|
$
|
23,187
|
|
$
|
4,769
|
|
$
|
6,614
|
|
$
|
11,383
|
|
1.
|
Fully federal taxable equivalent using a tax rate of approximately 21% for 2019 and 2018 and 35% for 2017.
|
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Net interest income ("GAAP")
|
$
|
161,361
|
|
$
|
138,209
|
|
$
|
126,125
|
|
Taxable equivalent adjustment
|
790
|
|
756
|
|
1,457
|
|
|||
Net interest income, fully taxable equivalent
|
$
|
162,151
|
|
$
|
138,965
|
|
$
|
127,582
|
|
|
|
|
|
||||||
Average total interest earning assets
|
$
|
4,511,544
|
|
$
|
3,942,285
|
|
$
|
3,691,714
|
|
|
|
|
|
||||||
Net interest margin
|
3.59
|
%
|
3.52
|
%
|
3.46
|
%
|
|||
Accretion related to fair value adjustments
|
(0.08
|
)
|
(0.03
|
)
|
(0.06
|
)
|
|||
Net interest margin (excluding accretion)
|
3.51
|
%
|
3.49
|
%
|
3.40
|
%
|
|||
|
|
|
|
||||||
Equity to assets ("GAAP")
|
13.11
|
%
|
12.26
|
%
|
12.16
|
%
|
|||
Effect of goodwill and other intangibles, net
|
(2.13
|
)
|
(2.26
|
)
|
(1.70
|
)
|
|||
Tangible common equity to tangible assets
|
10.98
|
%
|
10.00
|
%
|
10.46
|
%
|
|||
|
|
|
|
||||||
Return on tangible equity ("GAAP")
|
17.3
|
%
|
16.2
|
%
|
13.1
|
%
|
|||
Impact of effect tax rate decrease on deferred taxes
|
—
|
|
—
|
|
1.6
|
|
|||
Impact of merger related expenses
|
0.1
|
|
2.4
|
|
—
|
|
|||
Return on tangible equity, excluding the above items
|
17.4
|
%
|
18.6
|
%
|
14.7
|
%
|
|||
|
|
|
|
||||||
Return on assets ("GAAP")
|
1.80
|
%
|
1.63
|
%
|
1.33
|
%
|
|||
Impact of effect tax rate decrease on deferred taxes
|
—
|
|
—
|
|
0.17
|
|
|||
Impact of merger related expenses
|
0.02
|
|
0.24
|
|
—
|
|
|||
Return on assets, excluding the above items
|
1.82
|
%
|
1.87
|
%
|
1.50
|
%
|
|||
|
|
|
|
||||||
Effective tax rate ("GAAP")
|
21.3
|
%
|
20.5
|
%
|
40.2
|
%
|
|||
Impact of FIN 48 reserve adjustments
|
0.3
|
|
0.4
|
|
0.4
|
|
|||
Impact of effective tax rate decrease on deferred taxes
|
—
|
|
(0.2
|
)
|
(7.9
|
)
|
|||
Effective tax rate, excluding the above items
|
21.6
|
%
|
20.7
|
%
|
32.7
|
%
|
|||
|
|
|
|
||||||
|
|
|
|
|
For the year ended December 31,
|
|
|
||||||||
|
2019
|
2018
|
$ Change
|
% Change
|
|||||||
Unrealized gains (losses) recognized on equity securities still held
|
$
|
0.9
|
|
$
|
(0.1
|
)
|
$
|
1.0
|
|
1,000.0
|
%
|
Non-interest income, excluding unrealized gains (losses) recognized on equity securities still held
|
67.5
|
|
60.7
|
|
6.8
|
|
11.2
|
|
|||
Merger related expenses
|
0.8
|
|
13.3
|
|
(12.5
|
)
|
(94.0
|
)
|
|||
Non-interest expense, excluding merger related expenses
|
116.8
|
|
99.8
|
|
17.0
|
|
17.0
|
|
|
For the year ended December 31,
|
|
|
||||||||
|
2018
|
2017
|
$ Change
|
% Change
|
|||||||
Net investment security (losses) gains
|
$
|
(0.1
|
)
|
$
|
4.5
|
|
$
|
(4.6
|
)
|
(102.2
|
)%
|
Non-interest income, excluding net investment securities (losses) gains
|
60.7
|
|
59.1
|
|
1.6
|
|
2.7
|
|
|||
Merger related expenses
|
13.3
|
|
—
|
|
13.3
|
|
100.0
|
|
|||
Non-interest expense, excluding merger related expenses
|
99.8
|
|
96.0
|
|
3.8
|
|
4.0
|
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Income tax expense
|
$
|
24.1
|
|
$
|
18.0
|
|
$
|
36.4
|
|
|
|
|
|
||||||
Effective tax rate
|
21.3
|
%
|
20.5
|
%
|
40.2
|
%
|
|||
Recognition of previously unrecognized tax positions
|
0.3
|
|
0.4
|
|
0.4
|
|
|||
Impact of TCJA
|
—
|
|
(0.2
|
)
|
(7.9
|
)
|
|||
Effective tax rate, excluding above items
|
21.6
|
%
|
20.7
|
%
|
32.7
|
%
|
|
Carrying Values as of December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Securities available-for-sale:
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
117,187
|
|
$
|
128,070
|
|
$
|
96,196
|
|
U.S. Treasuries and U.S. government agencies
|
502
|
|
5,733
|
|
2
|
|
|||
Mortgage-backed securities:
|
|
|
|
||||||
U.S. government agencies
|
642,104
|
|
550,758
|
|
419,347
|
|
|||
Private label
|
11,485
|
|
12,043
|
|
652
|
|
|||
Trust preferred securities
|
4,461
|
|
4,799
|
|
4,736
|
|
|||
Corporate securities
|
32,126
|
|
16,658
|
|
22,268
|
|
|||
Total Debt Securities available-for-sale
|
807,865
|
|
718,061
|
|
543,201
|
|
|||
Marketable equity securities
|
—
|
|
—
|
|
5,699
|
|
|||
Certificates of deposit
|
2,241
|
|
3,735
|
|
—
|
|
|||
Investment funds
|
—
|
|
—
|
|
1,489
|
|
|||
Total Securities Available-for-Sale
|
810,106
|
|
721,796
|
|
550,389
|
|
|||
Securities held-to-maturity:
|
|
|
|
||||||
Mortgage backed securities
|
49,036
|
|
56,827
|
|
60,449
|
|
|||
Trust preferred securities
|
—
|
|
4,000
|
|
4,000
|
|
|||
Total Securities Held-to-Maturity
|
49,036
|
|
60,827
|
|
64,449
|
|
|||
Other investment securities:
|
|
|
|
||||||
Marketable equity securities
|
12,634
|
|
11,771
|
|
—
|
|
|||
Non-marketable equity securities
|
15,856
|
|
18,497
|
|
14,147
|
|
|||
Total Other Investment Securities
|
28,490
|
|
30,268
|
|
14,147
|
|
|||
|
|
|
|
||||||
Total Securities
|
$
|
887,632
|
|
$
|
812,891
|
|
$
|
628,985
|
|
|
Within
|
After One But
|
After Five But
|
After
|
||||||||||||||||
|
One Year
|
Within Five Years
|
Within Ten Years
|
Ten Years
|
||||||||||||||||
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
1,559
|
|
3.65
|
%
|
$
|
12,922
|
|
3.16
|
%
|
$
|
29,545
|
|
3.30
|
%
|
$
|
73,161
|
|
3.23
|
%
|
U.S. Treasuries and U.S. government agencies
|
—
|
|
—
|
|
—
|
|
—
|
|
502
|
|
3.37
|
|
—
|
|
—
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies
|
61
|
|
3.64
|
|
3,028
|
|
3.38
|
|
157,258
|
|
2.87
|
|
481,757
|
|
2.85
|
|
||||
Private label
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11,485
|
|
3.95
|
|
||||
Trust preferred securities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,461
|
|
3.68
|
|
||||
Corporate securities
|
—
|
|
—
|
|
1,067
|
|
5.30
|
|
30,567
|
|
3.88
|
|
492
|
|
5.41
|
|
||||
Total Debt Securities available-for-sale
|
1,620
|
|
3.65
|
|
17,017
|
|
3.33
|
|
217,872
|
|
3.07
|
|
571,356
|
|
2.93
|
|
||||
Certificates of deposit
|
249
|
|
2.00
|
|
1,992
|
|
5.45
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Total Securities available-for-sale
|
1,869
|
|
3.43
|
|
19,009
|
|
3.55
|
|
217,872
|
|
3.07
|
|
571,356
|
|
2.93
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage backed securities
|
—
|
|
—
|
|
—
|
|
—
|
|
4,937
|
|
3.90
|
|
44,099
|
|
2.94
|
|
||||
Trust preferred securities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Total Securities Held-to-Maturity
|
—
|
|
—
|
|
—
|
|
—
|
|
4,937
|
|
3.90
|
|
44,099
|
|
2.94
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||||||
Total Debt Securities
|
$
|
1,869
|
|
3.43
|
%
|
$
|
19,009
|
|
3.55
|
%
|
$
|
222,809
|
|
3.00
|
%
|
$
|
615,455
|
|
2.93
|
%
|
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||
|
|
|
|
|
|
||||||||||
Residential real estate
|
$
|
1,640,396
|
|
$
|
1,635,338
|
|
$
|
1,468,278
|
|
$
|
1,451,462
|
|
$
|
1,383,133
|
|
Home equity
|
148,928
|
|
153,496
|
|
139,499
|
|
141,965
|
|
147,036
|
|
|||||
Commercial and industrial
|
308,015
|
|
286,314
|
|
208,484
|
|
185,667
|
|
165,340
|
|
|||||
Commercial real estate
|
1,459,737
|
|
1,454,942
|
|
1,277,576
|
|
1,229,516
|
|
1,127,581
|
|
|||||
Consumer
|
54,263
|
|
51,190
|
|
29,162
|
|
32,545
|
|
36,083
|
|
|||||
DDA overdrafts
|
4,760
|
|
6,328
|
|
4,411
|
|
5,071
|
|
3,361
|
|
|||||
Gross loans
|
$
|
3,616,099
|
|
$
|
3,587,608
|
|
$
|
3,127,410
|
|
$
|
3,046,226
|
|
$
|
2,862,534
|
|
|
|
|
|
|
|
||||||||||
$ change from the preceding year
|
$
|
28,491
|
|
$
|
460,198
|
|
$
|
81,184
|
|
$
|
183,692
|
|
$
|
210,544
|
|
% change from the preceding year
|
0.8
|
%
|
14.7
|
%
|
2.7
|
%
|
6.4
|
%
|
7.9
|
%
|
|
Within One Year
|
After One But Within Five Years
|
After Five Years
|
Total
|
||||||||
|
|
|
|
|
||||||||
Residential real estate
|
$
|
174,674
|
|
$
|
578,416
|
|
$
|
887,306
|
|
$
|
1,640,396
|
|
Home equity
|
18,213
|
|
55,542
|
|
75,173
|
|
148,928
|
|
||||
Commercial and industrial
|
92,288
|
|
164,887
|
|
50,840
|
|
308,015
|
|
||||
Commercial real estate
|
301,498
|
|
627,848
|
|
530,391
|
|
1,459,737
|
|
||||
Consumer and DDA overdrafts
|
24,365
|
|
31,974
|
|
2,684
|
|
59,023
|
|
||||
Total loans
|
$
|
611,038
|
|
$
|
1,458,667
|
|
$
|
1,546,394
|
|
$
|
3,616,099
|
|
|
|
|
|
|
||||||||
Loans maturing after one year with interest rates that are:
|
|
|
|
|
||||||||
Fixed until maturity
|
$
|
399,534
|
|
|
|
|
||||||
Variable or adjustable
|
2,605,527
|
|
|
|
|
|||||||
Total
|
$
|
3,005,061
|
|
|
|
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
(Recovery of) provision for loan losses
|
$
|
(1,250
|
)
|
$
|
(2,310
|
)
|
$
|
3,006
|
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Net charge-offs
|
$
|
3,127
|
|
$
|
560
|
|
$
|
3,900
|
|
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Balance at beginning of period
|
$
|
15,966
|
|
$
|
18,836
|
|
$
|
19,730
|
|
$
|
19,251
|
|
$
|
20,074
|
|
|
|
|
|
|
|
||||||||||
Charge-offs:
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
(261
|
)
|
(733
|
)
|
(400
|
)
|
(148
|
)
|
(5,768
|
)
|
|||||
Commercial real estate
|
(1,358
|
)
|
(369
|
)
|
(720
|
)
|
(1,676
|
)
|
(580
|
)
|
|||||
Residential real estate
|
(787
|
)
|
(682
|
)
|
(1,637
|
)
|
(1,734
|
)
|
(1,144
|
)
|
|||||
Home equity
|
(294
|
)
|
(219
|
)
|
(403
|
)
|
(390
|
)
|
(312
|
)
|
|||||
Consumer
|
(1,177
|
)
|
(769
|
)
|
(60
|
)
|
(126
|
)
|
(210
|
)
|
|||||
DDA overdrafts
|
(2,777
|
)
|
(2,701
|
)
|
(2,714
|
)
|
(1,412
|
)
|
(1,414
|
)
|
|||||
Total charge-offs
|
(6,654
|
)
|
(5,473
|
)
|
(5,934
|
)
|
(5,486
|
)
|
(9,428
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Recoveries:
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
764
|
|
2,152
|
|
58
|
|
14
|
|
74
|
|
|||||
Commercial real estate
|
624
|
|
732
|
|
112
|
|
487
|
|
366
|
|
|||||
Residential real estate
|
369
|
|
367
|
|
294
|
|
187
|
|
199
|
|
|||||
Home equity
|
—
|
|
—
|
|
45
|
|
—
|
|
—
|
|
|||||
Consumer
|
265
|
|
166
|
|
63
|
|
118
|
|
186
|
|
|||||
DDA overdrafts
|
1,505
|
|
1,496
|
|
1,462
|
|
764
|
|
792
|
|
|||||
Total recoveries
|
3,527
|
|
4,913
|
|
2,034
|
|
1,570
|
|
1,617
|
|
|||||
Net charge-offs
|
(3,127
|
)
|
(560
|
)
|
(3,900
|
)
|
(3,916
|
)
|
(7,811
|
)
|
|||||
(Recovery of) provision for loan losses
|
(1,250
|
)
|
(2,310
|
)
|
3,006
|
|
4,395
|
|
6,988
|
|
|||||
Balance at end of period
|
$
|
11,589
|
|
$
|
15,966
|
|
$
|
18,836
|
|
$
|
19,730
|
|
$
|
19,251
|
|
|
|
|
|
|
|
||||||||||
As a Percent of Average Total Loans:
|
|
|
|
|
|
||||||||||
Net charge-offs
|
0.09
|
%
|
0.02
|
%
|
0.13
|
%
|
0.13
|
%
|
0.29
|
%
|
|||||
(Recovery of) provision for loan losses
|
(0.04
|
)%
|
(0.07
|
)%
|
0.10
|
%
|
0.15
|
%
|
0.26
|
%
|
|||||
|
|
|
|
|
|
||||||||||
As a Percent of Non-Performing Loans:
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
98.57
|
%
|
107.82
|
%
|
178.39
|
%
|
140.10
|
%
|
110.37
|
%
|
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||
Non-accrual loans
|
$
|
11,490
|
|
$
|
14,551
|
|
$
|
10,297
|
|
$
|
13,701
|
|
$
|
16,948
|
|
Accruing loans past due 90 days or more
|
267
|
|
257
|
|
262
|
|
382
|
|
495
|
|
|||||
Total non-performing loans
|
$
|
11,757
|
|
$
|
14,808
|
|
$
|
10,559
|
|
$
|
14,083
|
|
$
|
17,443
|
|
Other real estate owned ("OREO")
|
4,670
|
|
4,608
|
|
3,585
|
|
4,588
|
|
6,519
|
|
|||||
Total non-performing assets
|
$
|
16,427
|
|
$
|
19,416
|
|
$
|
14,144
|
|
$
|
18,671
|
|
$
|
23,962
|
|
|
|
|
|
|
|
||||||||||
As a Percentage of Total Loans and OREO
|
|
|
|
|
|
||||||||||
Non-performing assets
|
0.45
|
%
|
0.54
|
%
|
0.45
|
%
|
0.61
|
%
|
0.84
|
%
|
|||||
|
|
|
|
|
|
||||||||||
Past-due loans
|
$
|
11,396
|
|
$
|
13,131
|
|
$
|
10,963
|
|
$
|
8,594
|
|
$
|
9,164
|
|
|
|
|
|
|
|
||||||||||
As a Percentage of Total Loans
|
|
|
|
|
|
||||||||||
Past-due loans
|
0.32
|
%
|
0.37
|
%
|
0.35
|
%
|
0.28
|
%
|
0.32
|
%
|
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||
Impaired loans with a valuation allowance
|
$
|
2,644
|
|
$
|
2,985
|
|
$
|
5,782
|
|
$
|
2,832
|
|
$
|
—
|
|
Impaired loans with no valuation allowance
|
4,047
|
|
7,521
|
|
3,885
|
|
4,749
|
|
8,482
|
|
|||||
Total impaired loans
|
$
|
6,691
|
|
$
|
10,506
|
|
$
|
9,667
|
|
$
|
7,581
|
|
$
|
8,482
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses allocated to impaired loans
|
$
|
87
|
|
$
|
428
|
|
$
|
647
|
|
$
|
665
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||||||
Interest income forgone on non-accrual and impaired loans
|
$
|
200
|
|
$
|
200
|
|
$
|
200
|
|
$
|
400
|
|
$
|
800
|
|
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
98
|
|
$
|
135
|
|
$
|
42
|
|
$
|
58
|
|
Commercial real estate
|
4,973
|
|
8,205
|
|
8,381
|
|
5,525
|
|
1,746
|
|
|||||
Residential real estate
|
21,029
|
|
23,521
|
|
21,089
|
|
20,815
|
|
17,987
|
|
|||||
Home equity
|
3,628
|
|
3,030
|
|
3,097
|
|
3,135
|
|
2,693
|
|
|||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total TDRs
|
$
|
29,630
|
|
$
|
34,854
|
|
$
|
32,702
|
|
$
|
29,517
|
|
$
|
22,484
|
|
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||||||
|
Amount
|
Percent of Loans in Each Category to Total Loans
|
Amount
|
Percent of Loans in Each Category to Total Loans
|
Amount
|
Percent of Loans in Each Category to Total Loans
|
Amount
|
Percent of Loans in Each Category to Total Loans
|
Amount
|
Percent of Loans in Each Category to Total Loans
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial
|
$
|
2,059
|
|
9
|
%
|
$
|
4,060
|
|
8
|
%
|
$
|
4,571
|
|
7
|
%
|
$
|
4,206
|
|
6
|
%
|
$
|
3,271
|
|
6
|
%
|
Commercial real estate
|
2,606
|
|
40
|
|
4,495
|
|
41
|
|
6,183
|
|
41
|
|
6,573
|
|
40
|
|
6,985
|
|
39
|
|
|||||
Residential real estate
|
3,448
|
|
45
|
|
4,116
|
|
46
|
|
5,212
|
|
47
|
|
6,680
|
|
48
|
|
6,778
|
|
48
|
|
|||||
Home equity
|
1,187
|
|
4
|
|
1,268
|
|
4
|
|
1,138
|
|
4
|
|
1,417
|
|
5
|
|
1,463
|
|
5
|
|
|||||
Consumer
|
975
|
|
2
|
|
319
|
|
1
|
|
62
|
|
1
|
|
82
|
|
1
|
|
97
|
|
2
|
|
|||||
DDA overdrafts
|
1,314
|
|
—
|
|
1,708
|
|
—
|
|
1,670
|
|
—
|
|
772
|
|
—
|
|
657
|
|
—
|
|
|||||
Allowance for Loan Losses
|
$
|
11,589
|
|
100
|
%
|
$
|
15,966
|
|
100
|
%
|
$
|
18,836
|
|
100
|
%
|
$
|
19,730
|
|
100
|
%
|
$
|
19,251
|
|
100
|
%
|
|
Amounts
|
Percentage
|
|||
|
|
|
|||
Three months or less
|
$
|
148,367
|
|
23
|
%
|
Over three months through six months
|
114,061
|
|
18
|
|
|
Over six months through twelve months
|
147,078
|
|
23
|
|
|
Over twelve months
|
227,671
|
|
36
|
|
|
Total
|
$
|
637,177
|
|
100
|
%
|
|
Contractual Maturity in
|
||||||||||||||
|
Less than One Year
|
Between One and Three Years
|
Between Three and Five Years
|
Greater than Five Years
|
Total
|
||||||||||
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand deposits
|
$
|
805,087
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
805,087
|
|
Interest-bearing demand deposits(1)
|
896,500
|
|
—
|
|
—
|
|
—
|
|
896,500
|
|
|||||
Savings deposits(1)
|
1,009,797
|
|
—
|
|
—
|
|
—
|
|
1,009,797
|
|
|||||
Time deposits(1)
|
871,539
|
|
462,191
|
|
48,372
|
|
479
|
|
1,382,581
|
|
|||||
Short-term borrowings(1)
|
213,721
|
|
—
|
|
—
|
|
—
|
|
213,721
|
|
|||||
Long-term debt(1)(2)
|
152
|
|
304
|
|
304
|
|
5,880
|
|
6,640
|
|
|||||
Real estate leases
|
1,043
|
|
1,485
|
|
999
|
|
2,058
|
|
5,585
|
|
|||||
Total Contractual Obligations
|
$
|
3,797,839
|
|
$
|
463,980
|
|
$
|
49,675
|
|
$
|
8,417
|
|
$
|
4,319,911
|
|
(1)
|
Includes interest on both fixed- and variable-rate obligations. The interest associated with variable-rate obligations is based upon interest rates in effect at December 31, 2019. The contractual amounts to be paid on variable-rate obligations are affected by market interest rates that could materially affect the contractual amounts to be paid.
|
(2)
|
On January 29, 2020, the Board of Directors of the Company authorized repayment of its Subordinated Debentures. All regulatory approvals have been received by the Company and the Company anticipates the repayment to be completed during the first quarter of 2020.
|
December 31, 2019
|
Actual
|
|
Minimum Required - Basel III
|
|
Required to be Considered Well Capitalized
|
|||||||||||||||
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
$
|
532,640
|
|
|
16.0
|
%
|
|
$
|
232,358
|
|
|
7.0
|
%
|
|
$
|
215,761
|
|
|
6.5
|
%
|
City National Bank
|
459,006
|
|
|
13.9
|
%
|
|
230,808
|
|
|
7.0
|
%
|
|
214,322
|
|
|
6.5
|
%
|
|||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
536,640
|
|
|
16.2
|
%
|
|
282,150
|
|
|
8.5
|
%
|
|
265,552
|
|
|
8.0
|
%
|
|||
City National Bank
|
459,006
|
|
|
13.9
|
%
|
|
280,267
|
|
|
8.5
|
%
|
|
263,781
|
|
|
8.0
|
%
|
|||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
548,291
|
|
|
16.5
|
%
|
|
348,538
|
|
|
10.5
|
%
|
|
331,941
|
|
|
10.0
|
%
|
|||
City National Bank
|
470,656
|
|
|
14.3
|
%
|
|
346,213
|
|
|
10.5
|
%
|
|
329,726
|
|
|
10.0
|
%
|
|||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
536,640
|
|
|
11.0
|
%
|
|
195,558
|
|
|
4.0
|
%
|
|
244,448
|
|
|
5.0
|
%
|
|||
City National Bank
|
459,006
|
|
|
9.5
|
%
|
|
193,074
|
|
|
4.0
|
%
|
|
241,342
|
|
|
5.0
|
%
|
December 31, 2018:
|
Actual
|
|
Minimum Required - Basel III Phase-In Schedule
|
|
Minimum Required - Basel III Fully Phased-In (*)
|
|
Required to be Considered Well Capitalized
|
||||||||||||||||||||
|
|
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CET 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
$
|
492,526
|
|
|
15.1
|
%
|
|
$
|
208,294
|
|
|
6.375
|
%
|
|
$
|
228,715
|
|
|
7.0
|
%
|
|
$
|
212,378
|
|
|
6.5
|
%
|
City National Bank
|
423,099
|
|
|
13.1
|
%
|
|
206,676
|
|
|
6.375
|
%
|
|
226,938
|
|
|
7.0
|
%
|
|
210,728
|
|
|
6.5
|
%
|
||||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
496,526
|
|
|
15.2
|
%
|
|
257,304
|
|
|
7.875
|
%
|
|
277,725
|
|
|
8.5
|
%
|
|
261,389
|
|
|
8.0
|
%
|
||||
City National Bank
|
423,099
|
|
|
13.1
|
%
|
|
255,306
|
|
|
7.875
|
%
|
|
275,568
|
|
|
8.5
|
%
|
|
259,358
|
|
|
8.0
|
%
|
||||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
512,801
|
|
|
15.7
|
%
|
|
322,651
|
|
|
9.875
|
%
|
|
343,072
|
|
|
10.5
|
%
|
|
326,736
|
|
|
10.0
|
%
|
||||
City National Bank
|
439,374
|
|
|
13.6
|
%
|
|
320,145
|
|
|
9.875
|
%
|
|
340,408
|
|
|
10.5
|
%
|
|
324,198
|
|
|
10.0
|
%
|
||||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
496,526
|
|
|
11.4
|
%
|
|
174,833
|
|
|
4.000
|
%
|
|
174,833
|
|
|
4.0
|
%
|
|
218,542
|
|
|
5.0
|
%
|
||||
City National Bank
|
423,099
|
|
|
9.8
|
%
|
|
172,594
|
|
|
4.000
|
%
|
|
172,594
|
|
|
4.0
|
%
|
|
215,742
|
|
|
5.0
|
%
|
||||
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.
|
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
|
||
December 31, 2019
|
|
|
||
+300
|
4.75
|
%
|
+3.8
|
%
|
+200
|
3.75
|
|
+4.8
|
|
+100
|
2.75
|
|
+3.7
|
|
-50
|
1.25
|
|
-3.9
|
|
-100
|
0.75
|
|
-10.0
|
|
|
|
|
||
December 31, 2018
|
|
|
||
+300
|
5.50
|
%
|
+1.6
|
%
|
+200
|
4.50
|
|
+2.6
|
|
+100
|
3.50
|
|
+2.8
|
|
-50
|
2.00
|
|
-3.1
|
|
-100
|
1.50
|
|
-6.9
|
|
-200
|
0.50
|
|
-16.3
|
|
/s/ Charles R. Hageboeck
|
|
/s/ David L. Bumgarner
|
|
Charles R. Hageboeck
|
|
David L. Bumgarner
|
|
President & Chief Executive Officer
|
|
Chief Financial Officer
|
|
Principal Executive Officer
|
|
Principal Financial Officer
|
|
•
|
We tested management review controls over the reasonableness of the qualitative factors and the underlying documentation used in the review.
|
•
|
We tested management’s control over the mathematical application of the qualitative factors to adjust the historical loss experience.
|
•
|
We substantively tested management’s qualitative factors by evaluating the reliability of the underlying objective data used to derive the qualitative factors. Based on the underlying data, we evaluated the reasonableness of management’s designation of the risk factor as low, moderate/increasing or high and the resulting adjustment to the historical loss experience. We also evaluated the reasonableness of weightings applied to each risk factor.
|
•
|
We substantively tested the accuracy of the mathematical application of the qualitative factors to adjust the historical loss experience.
|
•
|
We performed analytical review procedures to determine if the overall result was consistent with trends in the loan portfolio and economic conditions.
|
/s/ Crowe LLP
|
|
We have served as the Company's auditor since 2019.
|
|
Louisville, Kentucky
|
|
February 27, 2020
|
|
/s/ Ernst & Young LLP
|
|
We served as the Company's auditor from 1982 to 2019.
|
|
Charleston, West Virginia
|
|
March 11, 2019
|
|
|
December 31, 2019
|
December 31, 2018
|
||||
Assets
|
|
|
||||
Cash and due from banks
|
$
|
88,658
|
|
$
|
55,016
|
|
Interest-bearing deposits in depository institutions
|
51,486
|
|
67,975
|
|
||
Cash and Cash Equivalents
|
140,144
|
|
122,991
|
|
||
|
|
|
||||
Investment securities available for sale, at fair value
|
810,106
|
|
721,796
|
|
||
Investment securities held-to-maturity, at amortized cost (approximate fair value at December 31, 2019 and 2018 - $50,598 and $60,706, respectively)
|
49,036
|
|
60,827
|
|
||
Other securities
|
28,490
|
|
30,268
|
|
||
Total Investment Securities
|
887,632
|
|
812,891
|
|
||
|
|
|
||||
Gross loans
|
3,616,099
|
|
3,587,608
|
|
||
Allowance for loan losses
|
(11,589
|
)
|
(15,966
|
)
|
||
Net Loans
|
3,604,510
|
|
3,571,642
|
|
||
|
|
|
||||
Bank owned life insurance
|
115,261
|
|
113,544
|
|
||
Premises and equipment, net
|
76,965
|
|
78,383
|
|
||
Accrued interest receivable
|
11,569
|
|
12,424
|
|
||
Deferred tax assets, net
|
6,669
|
|
17,338
|
|
||
Goodwill and other intangible assets, net
|
120,241
|
|
122,848
|
|
||
Other assets
|
55,765
|
|
46,951
|
|
||
Total Assets
|
$
|
5,018,756
|
|
$
|
4,899,012
|
|
|
|
|
||||
Liabilities
|
|
|
||||
Deposits:
|
|
|
||||
Noninterest-bearing
|
$
|
805,087
|
|
$
|
789,119
|
|
Interest-bearing:
|
|
|
||||
Demand deposits
|
896,465
|
|
899,568
|
|
||
Savings deposits
|
1,009,771
|
|
934,218
|
|
||
Time deposits
|
1,364,571
|
|
1,352,654
|
|
||
Total Deposits
|
4,075,894
|
|
3,975,559
|
|
||
|
|
|
||||
Short-term borrowings:
|
|
|
||||
Federal Home Loan Bank advances
|
—
|
|
40,000
|
|
||
Securities sold under agreements to repurchase
|
211,255
|
|
221,911
|
|
||
Long-term debt
|
4,056
|
|
4,053
|
|
||
Other liabilities
|
69,568
|
|
56,725
|
|
||
Total Liabilities
|
4,360,773
|
|
4,298,248
|
|
||
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; 19,047,548 shares issued at December 31, 2019 and 2018, less 2,744,109 and 2,492,403 shares in treasury, respectively
|
47,619
|
|
47,619
|
|
||
Capital surplus
|
170,309
|
|
169,555
|
|
||
Retained earnings
|
539,253
|
|
485,967
|
|
||
Cost of common stock in treasury
|
(105,038
|
)
|
(87,895
|
)
|
||
Accumulated other comprehensive income (loss):
|
|
|
||||
Unrealized gain (loss) on securities available-for-sale
|
12,110
|
|
(8,611
|
)
|
||
Underfunded pension liability
|
(6,270
|
)
|
(5,871
|
)
|
||
Total Accumulated Other Comprehensive Income (Loss)
|
5,840
|
|
(14,482
|
)
|
||
Total Shareholders’ Equity
|
657,983
|
|
600,764
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
5,018,756
|
|
$
|
4,899,012
|
|
|
Year Ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Interest Income
|
|
|
|
||||||
Interest and fees on loans
|
$
|
170,012
|
|
$
|
142,055
|
|
$
|
125,752
|
|
Interest on investment securities:
|
|
|
|
||||||
Taxable
|
23,389
|
|
17,337
|
|
14,387
|
|
|||
Tax-exempt
|
2,967
|
|
2,843
|
|
2,706
|
|
|||
Interest on deposits in depository institutions
|
1,332
|
|
1,666
|
|
85
|
|
|||
Total Interest Income
|
197,700
|
|
163,901
|
|
142,930
|
|
|||
|
|
|
|
||||||
Interest Expense
|
|
|
|
||||||
Interest on deposits
|
32,666
|
|
21,397
|
|
14,826
|
|
|||
Interest on short-term borrowings
|
3,491
|
|
3,415
|
|
1,214
|
|
|||
Interest on long-term debt
|
182
|
|
880
|
|
765
|
|
|||
Total Interest Expense
|
36,339
|
|
25,692
|
|
16,805
|
|
|||
Net Interest Income
|
161,361
|
|
138,209
|
|
126,125
|
|
|||
(Recovery of) provision for loan losses
|
(1,250
|
)
|
(2,310
|
)
|
3,006
|
|
|||
Net Interest Income After (Recovery of) Provision for Loan Losses
|
162,611
|
|
140,519
|
|
123,119
|
|
|||
|
|
|
|
||||||
Non-Interest Income
|
|
|
|
||||||
Net gains on sale of investment securities
|
69
|
|
—
|
|
4,476
|
|
|||
Unrealized gains (losses) recognized on equity securities still held
|
888
|
|
(90
|
)
|
—
|
|
|||
Service charges
|
31,515
|
|
29,704
|
|
28,574
|
|
|||
Bankcard revenue
|
21,093
|
|
18,369
|
|
17,120
|
|
|||
Trust and investment management fee income
|
7,159
|
|
6,529
|
|
6,269
|
|
|||
Bank owned life insurance
|
3,766
|
|
3,090
|
|
4,212
|
|
|||
Other income
|
4,000
|
|
2,962
|
|
2,956
|
|
|||
Total Non-Interest Income
|
68,490
|
|
60,564
|
|
63,607
|
|
|||
|
|
|
|
||||||
Non-Interest Expense
|
|
|
|
||||||
Salaries and employee benefits
|
62,138
|
|
54,385
|
|
51,057
|
|
|||
Occupancy related expenses
|
10,595
|
|
9,323
|
|
9,557
|
|
|||
Equipment and software related expenses
|
8,964
|
|
7,729
|
|
7,732
|
|
|||
FDIC insurance expense
|
638
|
|
1,251
|
|
1,348
|
|
|||
Advertising
|
3,344
|
|
2,974
|
|
2,914
|
|
|||
Bankcard expenses
|
5,555
|
|
4,503
|
|
3,924
|
|
|||
Postage, delivery, and statement mailings
|
2,416
|
|
2,157
|
|
2,094
|
|
|||
Office supplies
|
1,559
|
|
1,319
|
|
1,437
|
|
|||
Legal and professional fees
|
2,371
|
|
1,847
|
|
1,956
|
|
|||
Telecommunications
|
2,455
|
|
1,750
|
|
1,988
|
|
|||
Repossessed asset losses, net of expenses
|
634
|
|
845
|
|
735
|
|
|||
Merger related costs
|
797
|
|
13,257
|
|
—
|
|
|||
Other expenses
|
16,148
|
|
11,726
|
|
11,239
|
|
|||
Total Non-Interest Expense
|
117,614
|
|
113,066
|
|
95,981
|
|
|||
Income Before Income Taxes
|
113,487
|
|
88,017
|
|
90,745
|
|
CONSOLIDATED STATEMENTS OF INCOME CONTINUED
|
|
|
|
||||||
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
||||||
(in thousands, except earnings per share data)
|
|
|
|
||||||
|
|
|
|
||||||
|
Year Ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Income tax expense
|
24,135
|
|
18,015
|
|
36,435
|
|
|||
Net Income Available to Common Shareholders
|
$
|
89,352
|
|
$
|
70,002
|
|
$
|
54,310
|
|
|
|
|
|
||||||
Average shares outstanding, basic
|
16,314
|
|
15,421
|
|
15,412
|
|
|||
Effect of dilutive securities
|
19
|
|
18
|
|
24
|
|
|||
Average shares outstanding, diluted
|
16,333
|
|
15,439
|
|
15,436
|
|
|||
|
|
|
|
||||||
Basic earnings per common share
|
$
|
5.43
|
|
$
|
4.50
|
|
$
|
3.49
|
|
Diluted earnings per common share
|
$
|
5.42
|
|
$
|
4.49
|
|
$
|
3.48
|
|
|
Year Ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Net income available to common shareholders
|
$
|
89,352
|
|
$
|
70,002
|
|
$
|
54,310
|
|
|
|
|
|
||||||
Available-for-Sale Securities
|
|
|
|
||||||
Unrealized gain (loss) on available-for-sale securities arising during period
|
27,115
|
|
(7,054
|
)
|
7,396
|
|
|||
Reclassification adjustment for net (gains) losses
|
(69
|
)
|
90
|
|
(4,476
|
)
|
|||
Other comprehensive income (loss) related to available-for-sale securities
|
27,046
|
|
(6,964
|
)
|
2,920
|
|
|||
|
|
|
|
||||||
Defined Benefit Pension Plan
|
|
|
|
||||||
Amortization of actuarial net gains
|
917
|
|
890
|
|
849
|
|
|||
Recognition of unrealized losses
|
(1,447
|
)
|
(1,982
|
)
|
(11
|
)
|
|||
Change in underfunded pension liability
|
(530
|
)
|
(1,092
|
)
|
838
|
|
|||
|
|
|
|
||||||
Other comprehensive income (loss) before income taxes
|
26,516
|
|
(8,056
|
)
|
3,758
|
|
|||
Tax effect
|
(6,194
|
)
|
1,875
|
|
(1,391
|
)
|
|||
Other comprehensive income (loss), net of tax
|
20,322
|
|
(6,181
|
)
|
2,367
|
|
|||
|
|
|
|
||||||
Comprehensive income, net of tax
|
$
|
109,674
|
|
$
|
63,821
|
|
$
|
56,677
|
|
|
Common Stock
|
Capital Surplus
|
Retained Earnings
|
Treasury Stock
|
Accumulated Other Comprehensive Loss
|
Total Shareholders’ Equity
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Balances at December 31, 2016
|
$
|
46,518
|
|
$
|
112,873
|
|
$
|
417,017
|
|
$
|
(126,958
|
)
|
$
|
(7,012
|
)
|
$
|
442,438
|
|
Net income
|
—
|
|
—
|
|
54,310
|
|
—
|
|
—
|
|
54,310
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
2,367
|
|
2,367
|
|
||||||
Adoption of ASU No. 2018-02
|
—
|
|
—
|
|
999
|
|
—
|
|
(999
|
)
|
—
|
|
||||||
Cash dividends declared ($1.78 per share)
|
—
|
|
—
|
|
(27,845
|
)
|
—
|
|
—
|
|
(27,845
|
)
|
||||||
Stock-based compensation expense, net
|
—
|
|
2,097
|
|
—
|
|
—
|
|
—
|
|
2,097
|
|
||||||
Restricted awards granted
|
—
|
|
(1,351
|
)
|
—
|
|
1,351
|
|
—
|
|
—
|
|
||||||
Issuance of 441 shares of common stock
|
1,101
|
|
27,307
|
|
—
|
|
—
|
|
—
|
|
28,408
|
|
||||||
Exercise of 17 stock options
|
—
|
|
34
|
|
—
|
|
698
|
|
—
|
|
732
|
|
||||||
Balances at December 31, 2017
|
$
|
47,619
|
|
$
|
140,960
|
|
$
|
444,481
|
|
$
|
(124,909
|
)
|
$
|
(5,644
|
)
|
$
|
502,507
|
|
|
|
|
|
|
|
|
||||||||||||
Balances at December 31, 2017
|
$
|
47,619
|
|
$
|
140,960
|
|
$
|
444,481
|
|
$
|
(124,909
|
)
|
$
|
(5,644
|
)
|
$
|
502,507
|
|
Net income
|
—
|
|
—
|
|
70,002
|
|
—
|
|
—
|
|
70,002
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
(6,181
|
)
|
(6,181
|
)
|
||||||
Adoption of ASU No. 2016-01
|
—
|
|
—
|
|
2,657
|
|
—
|
|
(2,657
|
)
|
—
|
|
||||||
Cash dividends declared ($1.98 per share)
|
—
|
|
—
|
|
(31,173
|
)
|
—
|
|
—
|
|
(31,173
|
)
|
||||||
Stock-based compensation expense, net
|
—
|
|
2,151
|
|
—
|
|
—
|
|
—
|
|
2,151
|
|
||||||
Restricted awards granted
|
—
|
|
(1,585
|
)
|
—
|
|
1,585
|
|
—
|
|
—
|
|
||||||
Exercise of 30 stock options
|
—
|
|
(736
|
)
|
—
|
|
1,900
|
|
—
|
|
1,164
|
|
||||||
Purchase of 290 treasury shares
|
—
|
|
—
|
|
—
|
|
(20,271
|
)
|
—
|
|
(20,271
|
)
|
||||||
Acquisition of Poage (1,142 shares)
|
—
|
|
28,765
|
|
—
|
|
53,800
|
|
—
|
|
82,565
|
|
||||||
Balances at December 31, 2018
|
$
|
47,619
|
|
$
|
169,555
|
|
$
|
485,967
|
|
$
|
(87,895
|
)
|
$
|
(14,482
|
)
|
$
|
600,764
|
|
|
|
|
|
|
|
|
||||||||||||
Balances at December 31, 2018
|
$
|
47,619
|
|
$
|
169,555
|
|
$
|
485,967
|
|
$
|
(87,895
|
)
|
$
|
(14,482
|
)
|
$
|
600,764
|
|
Net income
|
—
|
|
—
|
|
89,352
|
|
—
|
|
—
|
|
89,352
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
|
20,322
|
|
20,322
|
|
||||||
Cash dividends declared ($2.20 per share)
|
—
|
|
—
|
|
(36,066
|
)
|
—
|
|
—
|
|
(36,066
|
)
|
||||||
Stock-based compensation expense, net
|
—
|
|
2,516
|
|
—
|
|
—
|
|
—
|
|
2,516
|
|
||||||
Restricted awards granted
|
—
|
|
(1,657
|
)
|
—
|
|
1,657
|
|
—
|
|
—
|
|
||||||
Exercise of 12 stock options
|
—
|
|
(105
|
)
|
—
|
|
631
|
|
—
|
|
526
|
|
||||||
Purchase of 261 treasury shares
|
—
|
|
—
|
|
—
|
|
(19,431
|
)
|
—
|
|
(19,431
|
)
|
||||||
Balances at December 31, 2019
|
$
|
47,619
|
|
$
|
170,309
|
|
$
|
539,253
|
|
$
|
(105,038
|
)
|
$
|
5,840
|
|
$
|
657,983
|
|
|
Year Ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Net income available to common shareholders
|
$
|
89,352
|
|
$
|
70,002
|
|
$
|
54,310
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||||
Amortization and accretion, net
|
699
|
|
1,281
|
|
1,005
|
|
|||
(Recovery of) provision for loan losses
|
(1,250
|
)
|
(2,310
|
)
|
3,006
|
|
|||
Depreciation of premises and equipment
|
5,003
|
|
5,087
|
|
5,884
|
|
|||
Deferred income tax expense (benefit)
|
4,939
|
|
(1,244
|
)
|
14,909
|
|
|||
Net periodic employee benefit cost
|
622
|
|
471
|
|
298
|
|
|||
Pension contributions
|
—
|
|
(1,509
|
)
|
—
|
|
|||
Unrealized and realized investment securities (gains) losses
|
(957
|
)
|
90
|
|
(4,476
|
)
|
|||
Stock-based compensation expense
|
2,516
|
|
2,151
|
|
2,097
|
|
|||
Excess tax benefit from stock-compensation expense
|
(461
|
)
|
(506
|
)
|
(558
|
)
|
|||
Increase in value of bank-owned life insurance
|
(3,766
|
)
|
(3,090
|
)
|
(2,708
|
)
|
|||
Loans held for sale
|
|
|
|
||||||
Loans originated for sale
|
(18,757
|
)
|
(15,196
|
)
|
(16,451
|
)
|
|||
Proceeds from the sale of loans originated for sale
|
20,917
|
|
13,993
|
|
19,290
|
|
|||
Gain on sale of loans
|
(589
|
)
|
(351
|
)
|
(516
|
)
|
|||
Asset write down
|
297
|
|
491
|
|
—
|
|
|||
Change in accrued interest receivable
|
855
|
|
(1,500
|
)
|
(815
|
)
|
|||
Change in other assets
|
(7,489
|
)
|
480
|
|
(2,102
|
)
|
|||
Change in other liabilities
|
6,712
|
|
4,308
|
|
2,953
|
|
|||
Net Cash Provided by Operating Activities
|
98,643
|
|
72,648
|
|
76,126
|
|
|||
|
|
|
|
||||||
Net increase in loans
|
(30,146
|
)
|
(95,284
|
)
|
(85,489
|
)
|
|||
Securities available-for-sale
|
|
|
|
||||||
Purchases
|
(209,588
|
)
|
(130,876
|
)
|
(159,317
|
)
|
|||
Proceeds from sales
|
70,404
|
|
—
|
|
5,776
|
|
|||
Proceeds from maturities and calls
|
75,717
|
|
56,841
|
|
58,358
|
|
|||
Securities held-to-maturity
|
|
|
|
||||||
Purchases
|
—
|
|
(4,925
|
)
|
—
|
|
|||
Proceeds from maturities and calls
|
11,706
|
|
8,439
|
|
10,580
|
|
|||
Other investments
|
|
|
|
||||||
Purchases
|
(11,100
|
)
|
(35,350
|
)
|
(27,714
|
)
|
|||
Proceeds from sales
|
13,790
|
|
31,271
|
|
27,918
|
|
|||
Purchases of premises and equipment
|
(4,729
|
)
|
(10,192
|
)
|
(6,574
|
)
|
|||
Proceeds from the disposals of premises and equipment
|
598
|
|
3,884
|
|
3,057
|
|
|||
Proceeds from the disposition of assets held-for-sale
|
2,285
|
|
—
|
|
—
|
|
|||
Proceeds from bank-owned life insurance policies
|
2,423
|
|
425
|
|
1,717
|
|
|||
Sale of Virginia Beach branch, net
|
(24,661
|
)
|
—
|
|
—
|
|
|||
Acquisition of Farmers Deposit Bancorp, Inc., net of cash acquired of $4,209
|
—
|
|
(20,691
|
)
|
—
|
|
|||
Acquisition of Poage Bankshares, Inc., net of cash acquired of $34,288
|
—
|
|
32,917
|
|
—
|
|
|||
Net Cash Used in Investing Activities
|
(103,301
|
)
|
(163,541
|
)
|
(171,688
|
)
|
|||
|
|
|
|
||||||
Net increase (decrease) in noninterest-bearing deposits
|
26,727
|
|
32,097
|
|
(5,647
|
)
|
|||
Net increase (decrease) in interest-bearing deposits
|
100,192
|
|
156,302
|
|
89,644
|
|
|||
Net (decrease) increase in short-term borrowings
|
(50,656
|
)
|
7,667
|
|
3,914
|
|
|||
Repayment of long-term debt
|
—
|
|
(16,495
|
)
|
—
|
|
|||
Proceeds from sale of capital securities
|
—
|
|
495
|
|
—
|
|
|||
Issuance of common stock
|
—
|
|
—
|
|
28,408
|
|
|||
Purchases of treasury stock
|
(19,431
|
)
|
(20,271
|
)
|
—
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS CONTINUED
|
|
|
|
||||||
CITY HOLDING COMPANY AND SUBSIDIARIES
|
|
|
|
||||||
(in thousands)
|
|
|
|
||||||
|
|
|
|
||||||
|
Year Ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Proceeds from exercise of stock options
|
526
|
|
1,164
|
|
732
|
|
|||
Dividends paid
|
(35,547
|
)
|
(29,583
|
)
|
(27,120
|
)
|
|||
Net Cash Provided by Financing Activities
|
21,811
|
|
131,376
|
|
89,931
|
|
|||
Increase (Decrease) in Cash and Cash Equivalents
|
17,153
|
|
40,483
|
|
(5,631
|
)
|
|||
Cash and cash equivalents at beginning of period
|
122,991
|
|
82,508
|
|
88,139
|
|
|||
Cash and Cash Equivalents at End of Period
|
$
|
140,144
|
|
$
|
122,991
|
|
$
|
82,508
|
|
(1)
|
ASC Topic 310-20 is used to value loans that do not have evidence of credit quality deterioration. For these loans, the difference between the fair value of the loan and the amortized cost of the loan is amortized or accreted into income using the interest method.
|
(2)
|
ASC Topic 310-30 is used to value loans that have evidence of credit quality deterioration. For these loans, the expected cash flows that exceed the fair value of the loan represent the accretable yield, which is recognized as interest income on a level-yield basis over the expected cash flow periods of the loans. The non-accretable difference represents the difference between the contractually required principal and interest payments and the cash flows expected to be collected based upon management’s estimation. Subsequent decreases in the expected cash flows will require the Company to evaluate the need for additions to the Company’s allowance for loan losses. Subsequent increases in the expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges with a corresponding adjustment to the accretable yield, which will result in the recognition of additional interest income over the remaining lives of the loans.
|
|
Farmers
|
|
|
||||||
|
Deposit
|
Poage
|
Total
|
||||||
Consideration:
|
|
|
|
||||||
Cash
|
$
|
24,900
|
|
$
|
16
|
|
$
|
24,916
|
|
Common stock
|
—
|
|
82,565
|
|
82,565
|
|
|||
Stock option buyout
|
—
|
|
1,355
|
|
1,355
|
|
|||
|
24,900
|
|
83,936
|
|
108,836
|
|
|||
|
|
|
|
||||||
Identifiable assets:
|
|
|
|
||||||
Cash and cash equivalents
|
4,173
|
|
34,325
|
|
38,498
|
|
|||
Investment securities
|
46,235
|
|
72,321
|
|
118,556
|
|
|||
Loans
|
58,485
|
|
304,359
|
|
362,844
|
|
|||
Bank owned life insurance
|
—
|
|
7,439
|
|
7,439
|
|
|||
Premises and equipment
|
568
|
|
4,547
|
|
5,115
|
|
|||
Deferred tax assets, net
|
25
|
|
2,454
|
|
2,479
|
|
|||
Other assets
|
2,302
|
|
8,757
|
|
11,059
|
|
|||
Total identifiable assets
|
111,788
|
|
434,202
|
|
545,990
|
|
|||
|
|
|
|
||||||
Identifiable liabilities:
|
|
|
|
||||||
Deposits
|
92,241
|
|
379,285
|
|
471,526
|
|
|||
Short-term borrowings
|
2,025
|
|
—
|
|
2,025
|
|
|||
Long-term debt
|
—
|
|
4,053
|
|
4,053
|
|
|||
Other liabilities
|
650
|
|
3,032
|
|
3,682
|
|
|||
Total identifiable liabilities
|
94,916
|
|
386,370
|
|
481,286
|
|
|||
|
|
|
|
||||||
Net identifiable assets
|
16,872
|
|
47,832
|
|
64,704
|
|
|||
Goodwill
|
4,694
|
|
28,050
|
|
32,744
|
|
|||
Core deposit intangible
|
3,334
|
|
8,054
|
|
11,388
|
|
|||
|
$
|
24,900
|
|
$
|
83,936
|
|
$
|
108,836
|
|
|
Total
|
||
Acquired Credit-Impaired
|
|
||
Contractually required principal and interest
|
$
|
25,315
|
|
Contractual cash flows not expected to be collected (non-accretable difference)
|
(13,593
|
)
|
|
Expected cash flows
|
11,722
|
|
|
Interest component of expected cash flows (accretable difference)
|
(2,375
|
)
|
|
Carrying value of purchased credit impaired loans acquired
|
$
|
9,347
|
|
|
|
||
Acquired Noncredit-Impaired
|
|
||
Outstanding balance
|
$
|
354,343
|
|
Less: fair value adjustment
|
(846
|
)
|
|
Carrying value of acquired noncredit-impaired loans
|
$
|
353,497
|
|
|
December 31, 2019
|
December 31, 2018
|
||||||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasuries and U.S.
|
|
|
|
|
|
|
|
|
||||||||||||||||
government agencies
|
$
|
500
|
|
$
|
2
|
|
$
|
—
|
|
$
|
502
|
|
$
|
5,713
|
|
$
|
20
|
|
$
|
—
|
|
$
|
5,733
|
|
Obligations of states and
|
|
|
|
|
|
|
|
|
||||||||||||||||
political subdivisions
|
112,393
|
|
4,800
|
|
6
|
|
117,187
|
|
128,089
|
|
1,033
|
|
1,052
|
|
128,070
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government agencies
|
631,637
|
|
12,292
|
|
1,825
|
|
642,104
|
|
561,799
|
|
1,950
|
|
12,991
|
|
550,758
|
|
||||||||
Private label
|
10,896
|
|
589
|
|
—
|
|
11,485
|
|
11,948
|
|
95
|
|
—
|
|
12,043
|
|
||||||||
Trust preferred securities
|
4,781
|
|
27
|
|
347
|
|
4,461
|
|
4,774
|
|
25
|
|
—
|
|
4,799
|
|
||||||||
Corporate securities
|
31,669
|
|
500
|
|
43
|
|
32,126
|
|
16,795
|
|
30
|
|
167
|
|
16,658
|
|
||||||||
Total Debt Securities
|
791,876
|
|
18,210
|
|
2,221
|
|
807,865
|
|
729,118
|
|
3,153
|
|
14,210
|
|
718,061
|
|
||||||||
Certificates of deposit held for investment
|
2,241
|
|
—
|
|
—
|
|
2,241
|
|
3,735
|
|
—
|
|
—
|
|
3,735
|
|
||||||||
Total Securities
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-Sale
|
$
|
794,117
|
|
$
|
18,210
|
|
$
|
2,221
|
|
$
|
810,106
|
|
$
|
732,853
|
|
$
|
3,153
|
|
$
|
14,210
|
|
$
|
721,796
|
|
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government agencies
|
$
|
49,036
|
|
$
|
1,562
|
|
$
|
—
|
|
$
|
50,598
|
|
$
|
56,827
|
|
$
|
173
|
|
$
|
294
|
|
$
|
56,706
|
|
Trust preferred securities
|
—
|
|
—
|
|
—
|
|
—
|
|
4,000
|
|
—
|
|
—
|
|
4,000
|
|
||||||||
Total Securities
|
|
|
|
|
|
|
|
|
||||||||||||||||
Held-to-Maturity
|
$
|
49,036
|
|
$
|
1,562
|
|
$
|
—
|
|
$
|
50,598
|
|
$
|
60,827
|
|
$
|
173
|
|
$
|
294
|
|
$
|
60,706
|
|
|
December 31, 2019
|
|||||||||||||||||
|
Less Than Twelve Months
|
Twelve Months or Greater
|
Total
|
|||||||||||||||
|
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
230
|
|
$
|
—
|
|
$
|
1,439
|
|
$
|
6
|
|
$
|
1,669
|
|
$
|
6
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
123,289
|
|
1,247
|
|
34,746
|
|
578
|
|
158,035
|
|
1,825
|
|
||||||
Trust preferred securities
|
4,200
|
|
347
|
|
—
|
|
—
|
|
4,200
|
|
347
|
|
||||||
Corporate securities
|
11,248
|
|
43
|
|
—
|
|
—
|
|
11,248
|
|
43
|
|
||||||
Total available-for-sale
|
$
|
138,967
|
|
$
|
1,637
|
|
$
|
36,185
|
|
$
|
584
|
|
$
|
175,152
|
|
$
|
2,221
|
|
|
December 31, 2018
|
|||||||||||||||||
|
Less Than Twelve Months
|
Twelve Months or Greater
|
Total
|
|||||||||||||||
|
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
11,837
|
|
$
|
272
|
|
$
|
22,068
|
|
$
|
780
|
|
$
|
33,905
|
|
$
|
1,052
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
84,975
|
|
1,593
|
|
282,560
|
|
11,398
|
|
367,535
|
|
12,991
|
|
||||||
Corporate securities
|
12,995
|
|
167
|
|
—
|
|
—
|
|
12,995
|
|
167
|
|
||||||
Total available-for-sale
|
$
|
109,807
|
|
$
|
2,032
|
|
$
|
304,628
|
|
$
|
12,178
|
|
$
|
414,435
|
|
$
|
14,210
|
|
|
|
|
|
|
|
|
||||||||||||
Securities held-to-maturity:
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
$
|
28,274
|
|
$
|
126
|
|
$
|
5,960
|
|
$
|
168
|
|
$
|
34,234
|
|
$
|
294
|
|
Total held-to-maturity
|
$
|
28,274
|
|
$
|
126
|
|
$
|
5,960
|
|
$
|
168
|
|
$
|
34,234
|
|
$
|
294
|
|
|
Cost
|
Estimated Fair Value
|
||||
Securities Available-for-Sale
|
|
|
||||
Due in one year or less
|
$
|
1,610
|
|
$
|
1,620
|
|
Due after one year through five years
|
16,578
|
|
17,017
|
|
||
Due after five years through ten years
|
213,829
|
|
217,872
|
|
||
Due after ten years
|
559,859
|
|
571,356
|
|
||
|
$
|
791,876
|
|
$
|
807,865
|
|
Securities Held-to-Maturity
|
|
|
||||
Due in one year or less
|
$
|
—
|
|
$
|
—
|
|
Due after one year through five years
|
—
|
|
—
|
|
||
Due after five years through ten years
|
4,937
|
|
5,241
|
|
||
Due after ten years
|
44,099
|
|
45,357
|
|
||
|
$
|
49,036
|
|
$
|
50,598
|
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Gross unrealized gains recognized on securities still held
|
$
|
888
|
|
$
|
208
|
|
$
|
—
|
|
Gross unrealized losses recognized on securities still held
|
—
|
|
(298
|
)
|
—
|
|
|||
Net unrealized (losses) gains recognized on securities still held
|
$
|
888
|
|
$
|
(90
|
)
|
$
|
—
|
|
|
|
|
|
||||||
Gross realized gains
|
$
|
226
|
|
$
|
—
|
|
$
|
4,476
|
|
Gross realized losses
|
(157
|
)
|
—
|
|
—
|
|
|||
Net realized investment security gains
|
$
|
69
|
|
$
|
—
|
|
$
|
4,476
|
|
|
December 31, 2019
|
December 31, 2018
|
||||
|
|
|
||||
Residential real estate
|
$
|
1,640,396
|
|
$
|
1,635,338
|
|
Home equity
|
148,928
|
|
153,496
|
|
||
Commercial and industrial
|
308,015
|
|
286,314
|
|
||
Commercial real estate
|
1,459,737
|
|
1,454,942
|
|
||
Consumer
|
54,263
|
|
51,190
|
|
||
DDA overdrafts
|
4,760
|
|
6,328
|
|
||
Gross loans
|
3,616,099
|
|
3,587,608
|
|
||
Allowance for loan losses
|
(11,589
|
)
|
(15,966
|
)
|
||
Net loans
|
$
|
3,604,510
|
|
$
|
3,571,642
|
|
|
|
|
||||
Construction loans included in:
|
|
|
||||
Residential real estate
|
$
|
29,033
|
|
$
|
21,834
|
|
Commercial real estate
|
64,049
|
|
37,869
|
|
|
Commercial and industrial
|
Commercial real estate
|
Residential real estate
|
Home equity
|
Consumer
|
DDA overdrafts
|
Total
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
||||||||||||||
Beginning balance
|
$
|
4,060
|
|
$
|
4,495
|
|
$
|
4,116
|
|
$
|
1,268
|
|
$
|
319
|
|
$
|
1,708
|
|
$
|
15,966
|
|
Charge-offs
|
(261
|
)
|
(1,358
|
)
|
(787
|
)
|
(294
|
)
|
(1,177
|
)
|
(2,777
|
)
|
(6,654
|
)
|
|||||||
Recoveries
|
764
|
|
624
|
|
369
|
|
—
|
|
265
|
|
1,505
|
|
3,527
|
|
|||||||
(Recovery of) provision
|
(2,504
|
)
|
(1,155
|
)
|
(250
|
)
|
213
|
|
1,568
|
|
878
|
|
(1,250
|
)
|
|||||||
Ending balance
|
$
|
2,059
|
|
$
|
2,606
|
|
$
|
3,448
|
|
$
|
1,187
|
|
$
|
975
|
|
$
|
1,314
|
|
$
|
11,589
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
||||||||||||||
Beginning balance
|
$
|
4,571
|
|
$
|
6,183
|
|
$
|
5,212
|
|
$
|
1,138
|
|
$
|
62
|
|
$
|
1,670
|
|
$
|
18,836
|
|
Charge-offs
|
(733
|
)
|
(369
|
)
|
(682
|
)
|
(219
|
)
|
(769
|
)
|
(2,701
|
)
|
(5,473
|
)
|
|||||||
Recoveries
|
2,152
|
|
732
|
|
367
|
|
—
|
|
166
|
|
1,496
|
|
4,913
|
|
|||||||
(Recovery of) provision
|
(1,930
|
)
|
(2,051
|
)
|
(781
|
)
|
349
|
|
860
|
|
1,243
|
|
(2,310
|
)
|
|||||||
Ending balance
|
$
|
4,060
|
|
$
|
4,495
|
|
$
|
4,116
|
|
$
|
1,268
|
|
$
|
319
|
|
$
|
1,708
|
|
$
|
15,966
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
||||||||||||||
Beginning balance
|
$
|
4,206
|
|
$
|
6,573
|
|
$
|
6,680
|
|
$
|
1,417
|
|
$
|
82
|
|
$
|
772
|
|
$
|
19,730
|
|
Charge-offs
|
(400
|
)
|
(720
|
)
|
(1,637
|
)
|
(403
|
)
|
(60
|
)
|
(2,714
|
)
|
(5,934
|
)
|
|||||||
Recoveries
|
58
|
|
112
|
|
294
|
|
45
|
|
63
|
|
1,462
|
|
2,034
|
|
|||||||
(Recovery of) provision
|
707
|
|
218
|
|
(125
|
)
|
79
|
|
(23
|
)
|
2,150
|
|
3,006
|
|
|||||||
Ending balance
|
$
|
4,571
|
|
$
|
6,183
|
|
$
|
5,212
|
|
$
|
1,138
|
|
$
|
62
|
|
$
|
1,670
|
|
$
|
18,836
|
|
|
|
|
|
|
|
|
|
||||||||||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
||||||||||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
||||||||||||||
Individually
|
$
|
—
|
|
$
|
87
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
87
|
|
Collectively
|
1,784
|
|
2,488
|
|
3,448
|
|
1,187
|
|
968
|
|
1,314
|
|
11,189
|
|
|||||||
Acquired with deteriorated credit quality
|
275
|
|
31
|
|
—
|
|
—
|
|
7
|
|
—
|
|
313
|
|
|||||||
Total
|
$
|
2,059
|
|
$
|
2,606
|
|
$
|
3,448
|
|
$
|
1,187
|
|
$
|
975
|
|
$
|
1,314
|
|
$
|
11,589
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans
|
|
|
|
|
|
|
|
||||||||||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
||||||||||||||
Individually
|
$
|
501
|
|
$
|
6,190
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,691
|
|
Collectively
|
306,372
|
|
1,445,522
|
|
1,638,204
|
|
148,928
|
|
54,160
|
|
4,760
|
|
3,597,946
|
|
|||||||
Acquired with deteriorated credit quality
|
1,142
|
|
8,025
|
|
2,192
|
|
—
|
|
103
|
|
—
|
|
11,462
|
|
|||||||
Total
|
$
|
308,015
|
|
$
|
1,459,737
|
|
$
|
1,640,396
|
|
$
|
148,928
|
|
$
|
54,263
|
|
$
|
4,760
|
|
$
|
3,616,099
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
Commercial real estate
|
Residential real estate
|
Home equity
|
Consumer
|
DDA overdrafts
|
Total
|
||||||||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
||||||||||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
||||||||||||||
Individually
|
$
|
—
|
|
$
|
428
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
428
|
|
Collectively
|
4,059
|
|
4,015
|
|
4,116
|
|
1,268
|
|
312
|
|
1,708
|
|
15,478
|
|
|||||||
Acquired with deteriorated credit quality
|
1
|
|
52
|
|
—
|
|
—
|
|
7
|
|
—
|
|
60
|
|
|||||||
Total
|
$
|
4,060
|
|
$
|
4,495
|
|
$
|
4,116
|
|
$
|
1,268
|
|
$
|
319
|
|
$
|
1,708
|
|
$
|
15,966
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans
|
|
|
|
|
|
|
|
||||||||||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
||||||||||||||
Individually
|
$
|
651
|
|
$
|
9,855
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,506
|
|
Collectively
|
284,018
|
|
1,433,674
|
|
1,633,241
|
|
153,496
|
|
51,077
|
|
6,328
|
|
3,561,834
|
|
|||||||
Acquired with deteriorated credit quality
|
1,645
|
|
11,413
|
|
2,097
|
|
—
|
|
113
|
|
—
|
|
15,268
|
|
|||||||
Total
|
$
|
286,314
|
|
$
|
1,454,942
|
|
$
|
1,635,338
|
|
$
|
153,496
|
|
$
|
51,190
|
|
$
|
6,328
|
|
$
|
3,587,608
|
|
Risk Rating
|
Description
|
Pass Ratings:
|
|
(a) Exceptional
|
Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy. Loans rated within this category pose minimal risk of loss to the bank and the risk grade within this pool of loans is generally updated on an annual basis.
|
(b) Good
|
Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles. Loans within this category are generally reviewed on an annual basis. Loans in this category generally have a low chance of loss to the bank.
|
(c) Acceptable
|
Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles. Loans within this category generally have a low risk of loss to the bank.
|
(d) Pass/watch
|
Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk. A borrower in this category poses a low to moderate risk of loss to the bank.
|
Special mention
|
Loans classified as special mention have a potential weakness(es) that deserves management's close attention. The potential weakness could result in deterioration of the loan repayment or the bank's credit position at some future date. A loan rated in this category poses a moderate loss risk to the bank.
|
Substandard
|
Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt. Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected or the bank's collateral value is weakened by the financial deterioration of the borrower.
|
Doubtful
|
Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable. Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position.
|
|
Commercial and industrial
|
Commercial real estate
|
Total
|
||||||
December 31, 2019
|
|
|
|
||||||
Pass
|
$
|
276,847
|
|
$
|
1,408,644
|
|
$
|
1,685,491
|
|
Special mention
|
2,472
|
|
13,838
|
|
16,310
|
|
|||
Substandard
|
28,696
|
|
37,255
|
|
65,951
|
|
|||
Doubtful
|
—
|
|
—
|
|
—
|
|
|||
Total
|
$
|
308,015
|
|
$
|
1,459,737
|
|
$
|
1,767,752
|
|
|
|
|
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|||
Pass
|
$
|
250,856
|
|
$
|
1,402,821
|
|
$
|
1,653,677
|
|
Special mention
|
27,886
|
|
5,696
|
|
33,582
|
|
|||
Substandard
|
7,572
|
|
46,425
|
|
53,997
|
|
|||
Doubtful
|
—
|
|
—
|
|
—
|
|
|||
Total
|
$
|
286,314
|
|
$
|
1,454,942
|
|
$
|
1,741,256
|
|
|
Performing
|
Non-Performing
|
Total
|
||||||
December 31, 2019
|
|
|
|
||||||
Residential real estate
|
$
|
1,636,920
|
|
$
|
3,476
|
|
$
|
1,640,396
|
|
Home equity
|
148,397
|
|
531
|
|
148,928
|
|
|||
Consumer
|
54,263
|
|
—
|
|
54,263
|
|
|||
DDA overdrafts
|
4,760
|
|
—
|
|
4,760
|
|
|||
Total
|
$
|
1,844,340
|
|
$
|
4,007
|
|
$
|
1,848,347
|
|
|
|
|
|
||||||
December 31, 2018
|
|
|
|
||||||
Residential real estate
|
$
|
1,630,892
|
|
$
|
4,446
|
|
$
|
1,635,338
|
|
Home equity
|
153,334
|
|
162
|
|
153,496
|
|
|||
Consumer
|
51,188
|
|
2
|
|
51,190
|
|
|||
DDA overdrafts
|
6,322
|
|
6
|
|
6,328
|
|
|||
Total
|
$
|
1,841,736
|
|
$
|
4,616
|
|
$
|
1,846,352
|
|
|
December 31, 2019
|
|||||||||||||||||
|
Accruing
|
|
|
|||||||||||||||
|
Current
|
30-59 days
|
60-89 days
|
Over 90 days
|
Non-accrual
|
Total
|
||||||||||||
Residential real estate
|
$
|
1,629,519
|
|
$
|
5,758
|
|
$
|
1,643
|
|
$
|
83
|
|
$
|
3,393
|
|
$
|
1,640,396
|
|
Home equity
|
147,441
|
|
840
|
|
116
|
|
—
|
|
531
|
|
148,928
|
|
||||||
Commercial and industrial
|
306,375
|
|
243
|
|
31
|
|
184
|
|
1,182
|
|
308,015
|
|
||||||
Commercial real estate
|
1,451,773
|
|
1,514
|
|
66
|
|
—
|
|
6,384
|
|
1,459,737
|
|
||||||
Consumer
|
54,075
|
|
156
|
|
32
|
|
—
|
|
—
|
|
54,263
|
|
||||||
DDA overdrafts
|
4,030
|
|
644
|
|
86
|
|
—
|
|
—
|
|
4,760
|
|
||||||
Total
|
$
|
3,593,213
|
|
$
|
9,155
|
|
$
|
1,974
|
|
$
|
267
|
|
$
|
11,490
|
|
$
|
3,616,099
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2018
|
|||||||||||||||||
|
Accruing
|
|
|
|||||||||||||||
|
Current
|
30-59 days
|
60-89 days
|
Over 90 days
|
Non-accrual
|
Total
|
||||||||||||
Residential real estate
|
$
|
1,621,073
|
|
$
|
8,607
|
|
$
|
1,213
|
|
$
|
170
|
|
$
|
4,275
|
|
$
|
1,635,338
|
|
Home equity
|
152,083
|
|
1,240
|
|
11
|
|
24
|
|
138
|
|
153,496
|
|
||||||
Commercial and industrial
|
284,140
|
|
397
|
|
49
|
|
52
|
|
1,676
|
|
286,314
|
|
||||||
Commercial real estate
|
1,445,896
|
|
487
|
|
94
|
|
4
|
|
8,461
|
|
1,454,942
|
|
||||||
Consumer
|
50,894
|
|
253
|
|
41
|
|
1
|
|
1
|
|
51,190
|
|
||||||
DDA overdrafts
|
5,840
|
|
467
|
|
15
|
|
6
|
|
—
|
|
6,328
|
|
||||||
Total
|
$
|
3,559,926
|
|
$
|
11,451
|
|
$
|
1,423
|
|
$
|
257
|
|
$
|
14,551
|
|
$
|
3,587,608
|
|
|
December 31, 2019
|
December 31, 2018
|
||||||||||||||||
|
|
Unpaid
|
|
|
Unpaid
|
|
||||||||||||
|
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
||||||||||||
|
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
501
|
|
$
|
501
|
|
$
|
—
|
|
$
|
651
|
|
$
|
651
|
|
$
|
—
|
|
Commercial real estate
|
3,546
|
|
3,572
|
|
—
|
|
6,870
|
|
6,895
|
|
—
|
|
||||||
Total
|
$
|
4,047
|
|
$
|
4,073
|
|
$
|
—
|
|
$
|
7,521
|
|
$
|
7,546
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate
|
2,644
|
|
2,644
|
|
87
|
|
2,985
|
|
2,985
|
|
428
|
|
||||||
Total
|
$
|
2,644
|
|
$
|
2,644
|
|
$
|
87
|
|
$
|
2,985
|
|
$
|
2,985
|
|
$
|
428
|
|
|
For the year ended
|
|||||||||||||||||
|
December 31, 2019
|
December 31, 2018
|
December 31, 2017
|
|||||||||||||||
|
Average
|
Interest
|
Average
|
Interest
|
Average
|
Interest
|
||||||||||||
|
Recorded
|
Income
|
Recorded
|
Income
|
Recorded
|
Income
|
||||||||||||
|
Investment
|
Recognized
|
Investment
|
Recognized
|
Investment
|
Recognized
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
578
|
|
$
|
—
|
|
$
|
845
|
|
$
|
—
|
|
$
|
1,086
|
|
$
|
—
|
|
Commercial real estate
|
4,388
|
|
41
|
|
4,623
|
|
39
|
|
4,534
|
|
69
|
|
||||||
Total
|
$
|
4,966
|
|
$
|
41
|
|
$
|
5,468
|
|
$
|
39
|
|
$
|
5,620
|
|
$
|
69
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate
|
4,261
|
|
162
|
|
5,043
|
|
220
|
|
4,307
|
|
149
|
|
||||||
Total
|
$
|
4,261
|
|
$
|
162
|
|
$
|
5,043
|
|
$
|
220
|
|
$
|
4,307
|
|
$
|
149
|
|
|
December 31, 2019
|
December 31, 2018
|
||||
Commercial and industrial
|
$
|
—
|
|
$
|
98
|
|
Commercial real estate
|
4,973
|
|
8,205
|
|
||
Residential real estate
|
21,029
|
|
23,521
|
|
||
Home equity
|
3,628
|
|
3,030
|
|
||
Consumer
|
—
|
|
—
|
|
||
Total TDRs
|
$
|
29,630
|
|
$
|
34,854
|
|
|
New TDRs
|
New TDRs
|
New TDRs
|
||||||||||||||||||||||
|
For the year ended
|
For the year ended
|
For the year ended
|
||||||||||||||||||||||
|
December 31, 2019
|
December 31, 2018
|
December 31, 2017
|
||||||||||||||||||||||
|
Pre
|
Post
|
|
Pre
|
Post
|
|
Pre
|
Post
|
|||||||||||||||||
|
Modification
|
Modification
|
|
Modification
|
Modification
|
|
Modification
|
Modification
|
|||||||||||||||||
|
Outstanding
|
Outstanding
|
|
Outstanding
|
Outstanding
|
|
Outstanding
|
Outstanding
|
|||||||||||||||||
Number of
|
Recorded
|
Recorded
|
Number of
|
Recorded
|
Recorded
|
Number of
|
Recorded
|
Recorded
|
|||||||||||||||||
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
|||||||||||||||||
Commercial and industrial
|
—
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
3,098
|
|
3,003
|
|
|||||||
Residential real estate
|
31
|
|
2,531
|
|
2,531
|
|
33
|
|
2,326
|
|
2,326
|
|
33
|
|
3,987
|
|
3,987
|
|
|||||||
Home equity
|
10
|
|
967
|
|
967
|
|
10
|
|
274
|
|
274
|
|
13
|
|
271
|
|
271
|
|
|||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
|
41
|
|
$
|
3,498
|
|
$
|
3,498
|
|
43
|
|
$
|
2,600
|
|
$
|
2,600
|
|
$
|
48
|
|
$
|
7,356
|
|
$
|
7,261
|
|
|
Estimated Useful Life
|
2019
|
2018
|
||||
|
|
|
|
||||
Land
|
|
$
|
34,185
|
|
$
|
34,538
|
|
Buildings and improvements
|
10 to 30 yrs.
|
95,662
|
|
95,873
|
|
||
Equipment
|
3 to 7 yrs.
|
43,135
|
|
41,856
|
|
||
|
|
172,982
|
|
172,267
|
|
||
Less: accumulated depreciation
|
|
(96,017
|
)
|
(93,884
|
)
|
||
|
|
$
|
76,965
|
|
$
|
78,383
|
|
|
2019
|
2018
|
||||
|
|
|
||||
Beginning balance
|
$
|
109,567
|
|
$
|
76,196
|
|
Goodwill and adjustments acquired in conjunction with the acquisition of Poage
|
(583
|
)
|
28,633
|
|
||
Goodwill and adjustments acquired in conjunction with the acquisition of Farmers Deposit
|
(43
|
)
|
4,738
|
|
||
Ending balance
|
$
|
108,941
|
|
$
|
109,567
|
|
|
2019
|
2018
|
||||
|
|
|
||||
Gross carrying amount
|
$
|
21,190
|
|
$
|
21,190
|
|
Accumulated amortization
|
(9,890
|
)
|
(7,909
|
)
|
||
|
$
|
11,300
|
|
$
|
13,281
|
|
|
|
|
||||
Beginning balance
|
$
|
13,281
|
|
$
|
2,399
|
|
Core deposit intangible acquired in conjunction with the acquisition of Poage
|
—
|
|
8,054
|
|
||
Core deposit intangible acquired in conjunction with the acquisition of Farmers Deposit
|
—
|
|
3,334
|
|
||
Amortization expense
|
(1,981
|
)
|
(506
|
)
|
||
Ending balance
|
$
|
11,300
|
|
$
|
13,281
|
|
2020
|
$
|
1,649
|
|
2021
|
1,472
|
|
|
2022
|
1,386
|
|
|
2023
|
1,220
|
|
|
2024
|
1,209
|
|
|
Thereafter
|
4,364
|
|
|
|
$
|
11,300
|
|
2020
|
$
|
859,387
|
|
2021
|
316,340
|
|
|
2022
|
140,575
|
|
|
2023
|
33,240
|
|
|
2024
|
14,563
|
|
|
Over five years
|
466
|
|
|
|
$
|
1,364,571
|
|
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Balance at end of year:
|
|
|
|
||||||
Federal Home Loan Bank advances
|
$
|
—
|
|
$
|
40,000
|
|
$
|
54,000
|
|
Securities sold under agreements to repurchase
|
211,255
|
|
221,911
|
|
198,219
|
|
|||
Federal Funds purchased
|
—
|
|
—
|
|
—
|
|
|||
|
|
|
|
||||||
Avg. outstanding during the year:
|
|
|
|
||||||
Federal Home Loan Bank advances
|
$
|
10,752
|
|
$
|
74,102
|
|
$
|
46,639
|
|
Securities sold under agreements to repurchase
|
200,697
|
|
190,702
|
|
183,890
|
|
|||
Federal Funds purchased
|
3
|
|
353
|
|
—
|
|
|||
|
|
|
|
||||||
Max. outstanding at any month end:
|
|
|
|
||||||
Federal Home Loan Bank advances
|
$
|
154,000
|
|
$
|
185,000
|
|
$
|
126,500
|
|
Securities sold under agreements to repurchase
|
226,603
|
|
221,911
|
|
257,034
|
|
|||
Federal Funds purchased
|
—
|
|
10,000
|
|
—
|
|
|||
|
|
|
|
||||||
Weighted-average interest rate:
|
|
|
|
||||||
During the year:
|
|
|
|
||||||
Federal Home Loan Bank advances
|
2.72
|
%
|
2.21
|
%
|
1.30
|
%
|
|||
Securities sold under agreements to repurchase
|
1.59
|
|
0.93
|
|
0.33
|
|
|||
Federal Funds purchased
|
2.84
|
|
2.10
|
|
—
|
|
|||
End of the year:
|
|
|
|
||||||
Federal Home Loan Bank advances
|
1.85
|
%
|
2.76
|
%
|
1.57
|
%
|
|||
Securities sold under agreements to repurchase
|
1.51
|
|
0.80
|
|
0.31
|
|
|||
Federal Funds purchased
|
—
|
|
—
|
|
—
|
|
|
2019
|
2018
|
||||
Subordinated debentures owed to Town Square Statutory Trust I, due 2036, interest at a rate of 3.74% and 4.64%, at December 31, 2019 and 2018, respectively.
|
$
|
4,124
|
|
$
|
4,124
|
|
Fair value adjustment of subordinated debentures
|
(68
|
)
|
(71
|
)
|
||
|
$
|
4,056
|
|
$
|
4,053
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
||||||||
Non-hedging interest rate derivatives:
|
|
|
|
|
|
|
|
||||||||
Customer counterparties:
|
|
|
|
|
|
|
|
||||||||
Loan interest rate swap - assets
|
$
|
377,534
|
|
|
$
|
16,094
|
|
|
$
|
132,146
|
|
|
$
|
3,131
|
|
Loan interest rate swap - liabilities
|
189,803
|
|
|
3,214
|
|
|
372,223
|
|
|
13,774
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-hedging interest rate derivatives:
|
|
|
|
|
|
|
|
||||||||
Financial institution counterparties:
|
|
|
|
|
|
|
|
||||||||
Loan interest rate swap - assets
|
189,803
|
|
|
3,214
|
|
|
403,500
|
|
|
13,902
|
|
||||
Loan interest rate swap - liabilities
|
382,566
|
|
|
16,133
|
|
|
132,146
|
|
|
3,131
|
|
|
Year Ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Change in Fair Value Non-Hedging Interest Rate Derivatives:
|
|
|
|
||||||
Other income - derivative assets
|
$
|
4,342
|
|
$
|
1,316
|
|
$
|
(3,379
|
)
|
Other income - derivative liabilities
|
(4,342
|
)
|
(1,316
|
)
|
3,379
|
|
|||
Other expense - derivative liabilities
|
165
|
|
50
|
|
86
|
|
|
2019
|
2018
|
||||
Allowance for loan losses
|
$
|
2,708
|
|
$
|
3,742
|
|
Deferred compensation payable
|
2,912
|
|
2,734
|
|
||
Underfunded pension liability
|
1,912
|
|
1,794
|
|
||
Accrued expenses
|
1,196
|
|
2,276
|
|
||
Impaired asset losses
|
703
|
|
1,201
|
|
||
Unrealized securities losses
|
—
|
|
1,871
|
|
||
Intangible assets
|
479
|
|
783
|
|
||
Other
|
6,584
|
|
6,492
|
|
||
Total Deferred Tax Assets
|
16,494
|
|
20,893
|
|
||
|
|
|
||||
Unrealized securities gains
|
3,709
|
|
—
|
|
||
Other
|
6,116
|
|
3,555
|
|
||
Total Deferred Tax Liabilities
|
9,825
|
|
3,555
|
|
||
Net Deferred Tax Assets
|
$
|
6,669
|
|
$
|
17,338
|
|
|
2019
|
2018
|
2017
|
||||||
Current:
|
|
|
|
||||||
Federal
|
$
|
16,636
|
|
$
|
16,846
|
|
$
|
20,090
|
|
State
|
2,560
|
|
2,413
|
|
1,436
|
|
|||
Total current tax expense
|
19,196
|
|
19,259
|
|
21,526
|
|
|||
|
|
|
|
||||||
Total deferred tax expense
|
4,939
|
|
(1,244
|
)
|
14,909
|
|
|||
Income tax expense
|
$
|
24,135
|
|
$
|
18,015
|
|
$
|
36,435
|
|
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Computed federal taxes at statutory rate
|
$
|
23,832
|
|
$
|
18,483
|
|
$
|
31,761
|
|
State income taxes, net of federal tax benefit
|
2,376
|
|
1,730
|
|
1,321
|
|
|||
Tax effects of:
|
|
|
|
||||||
Tax-exempt interest income
|
(733
|
)
|
(694
|
)
|
(1,098
|
)
|
|||
Bank-owned life insurance
|
(791
|
)
|
(649
|
)
|
(1,474
|
)
|
|||
Change in statutory tax rate
|
—
|
|
—
|
|
7,070
|
|
|||
Other items, net
|
(549
|
)
|
(855
|
)
|
(1,145
|
)
|
|||
Income tax expense
|
$
|
24,135
|
|
$
|
18,015
|
|
$
|
36,435
|
|
|
2019
|
2018
|
||||
|
|
|
||||
Beginning balance
|
$
|
1,811
|
|
$
|
1,889
|
|
Additions for current year tax positions
|
115
|
|
184
|
|
||
Additions for prior year tax positions
|
377
|
|
241
|
|
||
Decreases related to lapse of applicable statute of limitation
|
(496
|
)
|
(503
|
)
|
||
Ending balance
|
$
|
1,807
|
|
$
|
1,811
|
|
|
2019
|
2018
|
2017
|
||||||||||||
|
Options
|
Weighted-Average Exercise Price
|
Options
|
Weighted-Average Exercise Price
|
Options
|
Weighted-Average Exercise Price
|
|||||||||
Outstanding at January 1
|
57,972
|
|
$
|
51.15
|
|
87,605
|
|
$
|
47.15
|
|
86,613
|
|
$
|
41.08
|
|
Granted
|
—
|
|
—
|
|
—
|
|
—
|
|
17,631
|
|
66.32
|
|
|||
Exercised
|
(11,721
|
)
|
44.87
|
|
(29,633
|
)
|
39.31
|
|
(16,639
|
)
|
35.91
|
|
|||
Forfeited
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||
Outstanding at December 31
|
46,251
|
|
$
|
52.74
|
|
57,972
|
|
$
|
51.15
|
|
87,605
|
|
$
|
47.15
|
|
|
|
|
|
|
|
|
|||||||||
Exercisable at end of year
|
8,063
|
|
$
|
44.48
|
|
2,697
|
|
$
|
45.13
|
|
7,887
|
|
$
|
37.37
|
|
|
|
|
|
|
|
|
|||||||||
Nonvested at beginning of year
|
55,275
|
|
51.40
|
|
79,718
|
|
48.08
|
|
83,613
|
|
41.47
|
|
|||
Granted during the year
|
—
|
|
—
|
|
—
|
|
—
|
|
17,631
|
|
66.32
|
|
|||
Vested during the year
|
(17,087
|
)
|
44.65
|
|
(24,443
|
)
|
40.58
|
|
(21,526
|
)
|
37.31
|
|
|||
Forfeited during the year
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||
Nonvested at end of year
|
38,188
|
|
$
|
54.42
|
|
55,275
|
|
$
|
51.40
|
|
79,718
|
|
$
|
48.08
|
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Proceeds from stock option exercises
|
$
|
526
|
|
$
|
1,164
|
|
$
|
597
|
|
Intrinsic value of stock options exercised
|
368
|
|
944
|
|
481
|
|
|||
|
|
|
|
||||||
Stock-based compensation expense associated with stock options
|
$
|
119
|
|
$
|
178
|
|
$
|
246
|
|
Income tax benefit recognized related to stock-based compensation
|
12
|
|
19
|
|
42
|
|
|||
|
|
|
|
||||||
At period-end:
|
2019
|
|
|
||||||
Unrecognized stock-based compensation expense
|
$
|
84
|
|
|
|
||||
Weighted average period in which the above amount is expected to be recognized
|
1.5
|
|
years
|
|
|
2019
|
2018
|
2017
|
||||||||||||
|
Restricted Awards
|
Average Market Price at Grant
|
Restricted Awards
|
Average Market Price at Grant
|
Restricted Awards
|
Average Market Price at Grant
|
|||||||||
|
|
|
|
|
|
|
|||||||||
Outstanding at January 1
|
149,692
|
|
|
170,033
|
|
|
180,622
|
|
|
||||||
Granted
|
44,598
|
|
$
|
77.78
|
|
28,363
|
|
$
|
69.94
|
|
28,839
|
|
$
|
64.42
|
|
Forfeited/Vested
|
(46,207
|
)
|
|
(48,704
|
)
|
|
(39,428
|
)
|
|
||||||
Outstanding at December 31
|
148,083
|
|
|
149,692
|
|
|
170,033
|
|
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Stock-based compensation expense associated with restricted shares
|
$
|
2,022
|
|
$
|
1,609
|
|
$
|
1,507
|
|
|
|
|
|
||||||
At period-end:
|
2019
|
|
|
||||||
Unrecognized stock-based compensation expense
|
$
|
5,018
|
|
|
|
||||
Weighted average period in which the above amount is expected to be recognized
|
2.9
|
|
years
|
|
|
For the year ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Expense associated with the Company's 401(k) Plan
|
$
|
1,023
|
|
$
|
905
|
|
$
|
841
|
|
|
|
|
|
||||||
At period-end:
|
|
|
|
||||||
Number of shares of the Company's common stock held by the 401(k) Plan
|
203,989
|
|
229,276
|
|
228,662
|
|
|
Pension Benefits
|
|||||
|
2019
|
2018
|
||||
|
|
|
||||
Change in fair value of plan assets:
|
|
|
||||
Fair value at beginning of measurement period
|
$
|
12,041
|
|
$
|
16,360
|
|
Actual gain (loss) on plan assets
|
880
|
|
(434
|
)
|
||
Contributions
|
—
|
|
1,509
|
|
||
Benefits paid
|
(1,037
|
)
|
(5,394
|
)
|
||
Fair value at end of measurement period
|
11,884
|
|
12,041
|
|
||
|
|
|
||||
Change in benefit obligation:
|
|
|
||||
Benefit obligation at beginning of measurement period
|
(14,222
|
)
|
(18,488
|
)
|
||
Interest cost
|
(561
|
)
|
(590
|
)
|
||
Actuarial (loss) gain
|
(21
|
)
|
(1,488
|
)
|
||
Assumption changes
|
(1,452
|
)
|
825
|
|
||
Benefits paid
|
1,037
|
|
5,394
|
|
||
Settlement loss
|
—
|
|
125
|
|
||
Benefit obligation at end of measurement period
|
(15,219
|
)
|
(14,222
|
)
|
||
|
|
|
||||
Funded status
|
$
|
(3,335
|
)
|
$
|
(2,181
|
)
|
|
|
|
||||
Weighted-average assumptions for benefit obligation:
|
|
|
||||
Discount rate
|
3.05
|
%
|
4.10
|
%
|
||
Expected long-term rate of return
|
6.75
|
%
|
6.75
|
%
|
||
|
|
|
||||
Weighted-average assumptions for net periodic pension cost:
|
|
|
||||
Discount rate
|
4.10
|
%
|
3.38
|
%
|
||
Expected long-term rate of return
|
6.75
|
%
|
6.56
|
%
|
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Components of net periodic benefit:
|
|
|
|
||||||
Interest cost
|
$
|
561
|
|
$
|
590
|
|
$
|
772
|
|
Expected return on plan assets
|
(856
|
)
|
(1,080
|
)
|
(1,219
|
)
|
|||
Settlement
|
—
|
|
71
|
|
(104
|
)
|
|||
Net amortization and deferral
|
917
|
|
890
|
|
849
|
|
|||
Net Periodic Pension Cost
|
$
|
622
|
|
$
|
471
|
|
$
|
298
|
|
|
2019
|
2018
|
2017
|
||||||
Net actuarial gain (loss)
|
$
|
(530
|
)
|
$
|
(1,092
|
)
|
$
|
838
|
|
Deferred tax (expense) benefit
|
131
|
|
254
|
|
(1,211
|
)
|
|||
Other comprehensive income (loss), net of tax
|
$
|
(399
|
)
|
$
|
(838
|
)
|
$
|
(373
|
)
|
|
2019
|
2018
|
||||
Net actuarial loss
|
$
|
8,182
|
|
$
|
7,652
|
|
Deferred tax benefit
|
(1,912
|
)
|
(1,781
|
)
|
||
Amounts included in accumulated other comprehensive loss, net of tax
|
$
|
6,270
|
|
$
|
5,871
|
|
Plan Year Ending December 31,
|
Expected Benefits to be Paid
|
||
|
|
||
2020
|
$
|
995
|
|
2021
|
994
|
|
|
2022
|
1,002
|
|
|
2023
|
994
|
|
|
2024
|
1,008
|
|
|
2025 through 2028
|
4,747
|
|
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
2019
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
79
|
|
$
|
79
|
|
$
|
—
|
|
$
|
—
|
|
Common stocks
|
6,787
|
|
6,787
|
|
—
|
|
—
|
|
||||
Corporate bonds
|
5,018
|
|
—
|
|
5,018
|
|
—
|
|
||||
Total
|
$
|
11,884
|
|
$
|
6,866
|
|
$
|
5,018
|
|
$
|
—
|
|
|
|
|
|
|
||||||||
2018
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
12,041
|
|
$
|
12,041
|
|
$
|
—
|
|
$
|
—
|
|
Total
|
$
|
12,041
|
|
$
|
12,041
|
|
$
|
—
|
|
$
|
—
|
|
Pentegra DB Plan's Employer Identification Number
|
13-5645888
|
Plan Number
|
333
|
|
|
Funded status for plan inherited with Classic acquisition
|
89.02%
|
Funded status for plan inherited with Poage acquisition
|
94.35%
|
|
For the year ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Cost of other post-retirement benefits
|
$
|
304
|
|
$
|
280
|
|
$
|
278
|
|
|
|
|
|
||||||
At period-end:
|
|
|
|
||||||
Other post-retirement benefit liability (included in Other Liabilities)
|
6,570
|
|
6,923
|
|
5,695
|
|
|||
Cash surrender value of insurance policies (included in Other Assets)
|
6,544
|
|
6,807
|
|
6,954
|
|
|
|
Principal
|
Principal
|
|
||||||||
|
December 31, 2018
|
Additions
|
Reductions
|
December 31, 2019
|
||||||||
Related Party Loans
|
$
|
22,032
|
|
$
|
204
|
|
$
|
(1,854
|
)
|
$
|
20,382
|
|
Unfunded commitments
|
$
|
16,109
|
|
|
|
$
|
13,006
|
|
|
December 31, 2019
|
December 31, 2018
|
||||
|
|
|
||||
Commitments to extend credit:
|
|
|
||||
Home equity lines
|
$
|
214,715
|
|
$
|
207,509
|
|
Commercial real estate
|
56,941
|
|
68,649
|
|
||
Other commitments
|
213,904
|
|
201,687
|
|
||
Standby letters of credit
|
6,748
|
|
7,183
|
|
||
Commercial letters of credit
|
1,249
|
|
811
|
|
December 31, 2019
|
Actual
|
|
Minimum Required - Basel III
|
|
Required to be Considered Well Capitalized
|
|||||||||||||||
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
$
|
532,640
|
|
|
16.0
|
%
|
|
$
|
232,358
|
|
|
7.0
|
%
|
|
$
|
215,761
|
|
|
6.5
|
%
|
City National Bank
|
459,006
|
|
|
13.9
|
%
|
|
230,808
|
|
|
7.0
|
%
|
|
214,322
|
|
|
6.5
|
%
|
|||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
536,640
|
|
|
16.2
|
%
|
|
282,150
|
|
|
8.5
|
%
|
|
265,552
|
|
|
8.0
|
%
|
|||
City National Bank
|
459,006
|
|
|
13.9
|
%
|
|
280,267
|
|
|
8.5
|
%
|
|
263,781
|
|
|
8.0
|
%
|
|||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
548,291
|
|
|
16.5
|
%
|
|
348,538
|
|
|
10.5
|
%
|
|
331,941
|
|
|
10.0
|
%
|
|||
City National Bank
|
470,656
|
|
|
14.3
|
%
|
|
346,213
|
|
|
10.5
|
%
|
|
329,726
|
|
|
10.0
|
%
|
|||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
City Holding Company
|
536,640
|
|
|
11.0
|
%
|
|
195,558
|
|
|
4.0
|
%
|
|
244,448
|
|
|
5.0
|
%
|
|||
City National Bank
|
459,006
|
|
|
9.5
|
%
|
|
193,074
|
|
|
4.0
|
%
|
|
241,342
|
|
|
5.0
|
%
|
December 31, 2018:
|
Actual
|
|
Minimum Required - Basel III Phase-In Schedule
|
|
Minimum Required - Basel III Fully Phased-In (*)
|
|
Required to be Considered Well Capitalized
|
||||||||||||||||||||
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CET 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
$
|
492,526
|
|
|
15.1
|
%
|
|
$
|
208,294
|
|
|
6.375
|
%
|
|
$
|
228,715
|
|
|
7.0
|
%
|
|
$
|
212,378
|
|
|
6.5
|
%
|
City National Bank
|
423,099
|
|
|
13.1
|
%
|
|
206,676
|
|
|
6.375
|
%
|
|
226,938
|
|
|
7.0
|
%
|
|
210,728
|
|
|
6.5
|
%
|
||||
Tier 1 Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
496,526
|
|
|
15.2
|
%
|
|
257,304
|
|
|
7.875
|
%
|
|
277,725
|
|
|
8.5
|
%
|
|
261,389
|
|
|
8.0
|
%
|
||||
City National Bank
|
423,099
|
|
|
13.1
|
%
|
|
255,306
|
|
|
7.875
|
%
|
|
275,568
|
|
|
8.5
|
%
|
|
259,358
|
|
|
8.0
|
%
|
||||
Total Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
512,801
|
|
|
15.7
|
%
|
|
322,651
|
|
|
9.875
|
%
|
|
343,072
|
|
|
10.5
|
%
|
|
326,736
|
|
|
10.0
|
%
|
||||
City National Bank
|
439,374
|
|
|
13.6
|
%
|
|
320,145
|
|
|
9.875
|
%
|
|
340,408
|
|
|
10.5
|
%
|
|
324,198
|
|
|
10.0
|
%
|
||||
Tier 1 Leverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
City Holding Company
|
496,526
|
|
|
11.4
|
%
|
|
174,833
|
|
|
4.000
|
%
|
|
174,833
|
|
|
4.0
|
%
|
|
218,542
|
|
|
5.0
|
%
|
||||
City National Bank
|
423,099
|
|
|
9.8
|
%
|
|
172,594
|
|
|
4.000
|
%
|
|
172,594
|
|
|
4.0
|
%
|
|
215,742
|
|
|
5.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in.
|
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total Gains (Losses)
|
||||||||||
December 31, 2019
|
|
|
|
|
|
||||||||||
Recurring fair value measurements
|
|
|
|
|
|
||||||||||
Financial Assets
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
$
|
502
|
|
$
|
—
|
|
$
|
502
|
|
$
|
—
|
|
|
||
Obligations of states and political subdivisions
|
117,187
|
|
—
|
|
117,187
|
|
—
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|||||||||
U.S. Government agencies
|
642,104
|
|
—
|
|
642,104
|
|
—
|
|
|
||||||
Private label
|
11,485
|
|
—
|
|
11,485
|
|
—
|
|
|
||||||
Trust preferred securities
|
4,461
|
|
—
|
|
4,461
|
|
—
|
|
|
||||||
Corporate securities
|
32,126
|
|
—
|
|
32,126
|
|
—
|
|
|
||||||
Marketable equity securities
|
12,634
|
|
7,787
|
|
4,847
|
|
—
|
|
|
||||||
Certificates of Deposit held for investment
|
2,241
|
|
—
|
|
2,241
|
|
—
|
|
|
||||||
Derivative assets
|
19,310
|
|
—
|
|
19,310
|
|
—
|
|
|
||||||
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
19,380
|
|
—
|
|
19,380
|
|
—
|
|
|
||||||
|
|
|
|
|
|
||||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
||||||||||
Financial Assets
|
|
|
|
|
|
||||||||||
Impaired loans
|
$
|
8,925
|
|
$
|
—
|
|
$
|
—
|
|
$
|
8,925
|
|
$
|
(87
|
)
|
Non-Financial Assets
|
|
|
|
|
|
||||||||||
Other real estate owned
|
4,670
|
|
—
|
|
—
|
|
4,670
|
|
(470
|
)
|
|||||
Other assets
|
100
|
|
—
|
|
—
|
|
100
|
|
(297
|
)
|
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total Gains (Losses)
|
||||||||||
December 31, 2018
|
|
|
|
|
|
||||||||||
Recurring fair value measurements
|
|
|
|
|
|
||||||||||
Financial Assets
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
$
|
5,733
|
|
$
|
—
|
|
$
|
5,733
|
|
$
|
—
|
|
|
||
Obligations of states and political subdivisions
|
128,070
|
|
—
|
|
128,070
|
|
—
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
550,758
|
|
—
|
|
550,758
|
|
—
|
|
|
||||||
Private label
|
12,043
|
|
—
|
|
12,043
|
|
—
|
|
|
||||||
Trust preferred securities
|
4,799
|
|
—
|
|
4,538
|
|
261
|
|
|
||||||
Corporate securities
|
16,658
|
|
—
|
|
16,658
|
|
—
|
|
|
||||||
Marketable equity securities
|
11,771
|
|
7,365
|
|
4,406
|
|
—
|
|
|
||||||
Certificates of Deposit held for investment
|
3,735
|
|
—
|
|
3,735
|
|
—
|
|
|
||||||
Derivative assets
|
17,100
|
|
—
|
|
17,100
|
|
—
|
|
|
||||||
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
||||||||||
Derivative liabilities
|
16,905
|
|
—
|
|
16,905
|
|
—
|
|
|
||||||
|
|
|
|
|
|
||||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
||||||||||
Financial Assets
|
|
|
|
|
|
||||||||||
Impaired loans
|
$
|
10,078
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,078
|
|
$
|
(428
|
)
|
Non-Financial Assets
|
|
|
|
|
|
||||||||||
Other real estate owned
|
4,608
|
|
—
|
|
—
|
|
4,608
|
|
(838
|
)
|
|||||
Other assets
|
600
|
|
—
|
|
—
|
|
600
|
|
(491
|
)
|
|
Carrying Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
December 31, 2019
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
140,144
|
|
$
|
140,144
|
|
$
|
140,144
|
|
$
|
—
|
|
$
|
—
|
|
Securities available-for-sale
|
810,106
|
|
810,106
|
|
—
|
|
810,106
|
|
—
|
|
|||||
Securities held-to-maturity
|
49,036
|
|
50,598
|
|
—
|
|
50,598
|
|
—
|
|
|||||
Marketable equity securities
|
12,634
|
|
12,634
|
|
7,787
|
|
4,847
|
|
—
|
|
|||||
Net loans
|
3,604,510
|
|
3,574,435
|
|
—
|
|
—
|
|
3,574,435
|
|
|||||
Accrued interest receivable
|
11,569
|
|
11,569
|
|
11,569
|
|
—
|
|
—
|
|
|||||
Derivative assets
|
19,310
|
|
19,310
|
|
—
|
|
19,310
|
|
—
|
|
|||||
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
||||||||||
Deposits
|
4,075,894
|
|
4,094,493
|
|
2,711,323
|
|
1,383,170
|
|
—
|
|
|||||
Short-term debt
|
211,255
|
|
211,255
|
|
—
|
|
211,255
|
|
—
|
|
|||||
Long-term debt
|
4,056
|
|
4,124
|
|
—
|
|
4,124
|
|
—
|
|
|||||
Accrued interest payable
|
2,849
|
|
2,849
|
|
2,849
|
|
—
|
|
—
|
|
|||||
Derivative liabilities
|
19,380
|
|
19,380
|
|
—
|
|
19,380
|
|
—
|
|
|||||
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
122,991
|
|
$
|
122,991
|
|
$
|
122,991
|
|
$
|
—
|
|
$
|
—
|
|
Securities available-for-sale
|
721,796
|
|
721,796
|
|
—
|
|
721,535
|
|
261
|
|
|||||
Securities held-to-maturity
|
60,827
|
|
60,706
|
|
—
|
|
60,706
|
|
—
|
|
|||||
Marketable equity securities
|
11,771
|
|
11,771
|
|
7,365
|
|
4,406
|
|
—
|
|
|||||
Net loans
|
3,571,642
|
|
3,516,557
|
|
—
|
|
—
|
|
3,516,557
|
|
|||||
Accrued interest receivable
|
12,424
|
|
12,424
|
|
12,424
|
|
—
|
|
—
|
|
|||||
Derivative assets
|
17,100
|
|
17,100
|
|
—
|
|
17,100
|
|
—
|
|
|||||
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
||||||||||
Deposits
|
3,975,559
|
|
3,985,534
|
|
2,622,905
|
|
1,362,629
|
|
—
|
|
|||||
Short-term debt
|
261,911
|
|
261,911
|
|
—
|
|
261,911
|
|
—
|
|
|||||
Long-term debt
|
4,053
|
|
4,115
|
|
—
|
|
4,115
|
|
—
|
|
|||||
Accrued interest payable
|
2,630
|
|
2,630
|
|
2,630
|
|
—
|
|
—
|
|
|||||
Derivative liabilities
|
16,905
|
|
16,905
|
|
—
|
|
16,905
|
|
—
|
|
|
December 31
|
|||||
|
2019
|
2018
|
||||
|
|
|
||||
Assets
|
|
|
||||
Cash
|
$
|
26,171
|
|
$
|
20,621
|
|
Securities available-for-sale
|
6,286
|
|
5,908
|
|
||
Investment in subsidiaries
|
638,490
|
|
583,673
|
|
||
Loans
|
663
|
|
701
|
|
||
Fixed assets
|
23
|
|
5
|
|
||
Other assets
|
643
|
|
3,316
|
|
||
Total Assets
|
$
|
672,276
|
|
$
|
614,224
|
|
|
|
|
||||
Liabilities
|
|
|
||||
Junior subordinated debentures
|
$
|
4,056
|
|
$
|
4,053
|
|
Dividends payable
|
9,293
|
|
8,774
|
|
||
Deferred tax liability
|
534
|
|
366
|
|
||
Other liabilities
|
410
|
|
267
|
|
||
Total Liabilities
|
14,293
|
|
13,460
|
|
||
|
|
|
||||
Total Shareholders’ Equity
|
657,983
|
|
600,764
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
672,276
|
|
$
|
614,224
|
|
|
Year Ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Income
|
|
|
|
||||||
Dividends from subsidiaries
|
$
|
58,000
|
|
$
|
50,000
|
|
$
|
30,000
|
|
Realized and unrealized investment securities gains
|
425
|
|
208
|
|
200
|
|
|||
Other income
|
151
|
|
130
|
|
115
|
|
|||
|
58,576
|
|
50,338
|
|
30,315
|
|
|||
Expenses
|
|
|
|
||||||
Interest expense
|
182
|
|
880
|
|
765
|
|
|||
Merger related expenses
|
—
|
|
1,899
|
|
—
|
|
|||
Other expenses
|
1,794
|
|
1,842
|
|
1,636
|
|
|||
|
1,976
|
|
4,621
|
|
2,401
|
|
|||
Income Before Income Tax Benefit and Equity in Undistributed Net Income of Subsidiaries
|
56,600
|
|
45,717
|
|
27,914
|
|
|||
Income tax benefit
|
(455
|
)
|
(1,114
|
)
|
(1,197
|
)
|
|||
Income Before Equity in Undistributed Net Income of Subsidiaries
|
57,055
|
|
46,831
|
|
29,111
|
|
|||
Equity in undistributed net income of subsidiaries
|
32,297
|
|
23,171
|
|
25,199
|
|
|||
Net Income
|
$
|
89,352
|
|
$
|
70,002
|
|
$
|
54,310
|
|
|
|
|
|
||||||
Total Comprehensive Income
|
$
|
109,674
|
|
$
|
63,821
|
|
$
|
56,677
|
|
|
Year Ended December 31
|
||||||||
|
2019
|
2018
|
2017
|
||||||
Operating Activities
|
|
|
|
||||||
Net income
|
$
|
89,352
|
|
$
|
70,002
|
|
$
|
54,310
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||||
Unrealized and realized investment securities gains
|
(425
|
)
|
(208
|
)
|
(200
|
)
|
|||
Provision (benefit) for deferred income taxes
|
173
|
|
(88
|
)
|
1,347
|
|
|||
Depreciation, amortization and accretion, net
|
3
|
|
1
|
|
1
|
|
|||
Stock based compensation
|
2,516
|
|
2,151
|
|
2,097
|
|
|||
Asset write down
|
—
|
|
193
|
|
—
|
|
|||
Change in other assets
|
2,696
|
|
2,668
|
|
(405
|
)
|
|||
Change in other liabilities
|
(2,060
|
)
|
(1,816
|
)
|
(1,660
|
)
|
|||
Equity in undistributed net income
|
(32,297
|
)
|
(23,171
|
)
|
(25,199
|
)
|
|||
Net Cash Provided by Operating Activities
|
59,958
|
|
49,732
|
|
30,291
|
|
|||
|
|
|
|
||||||
Investing Activities
|
|
|
|
||||||
Proceeds from sales of available for sale securities
|
6
|
|
—
|
|
200
|
|
|||
Net decrease in loans
|
38
|
|
—
|
|
—
|
|
|||
Acquisition of Farmers Deposit Bancorp, Inc., net of cash acquired of $946
|
—
|
|
(23,954
|
)
|
—
|
|
|||
Acquisition of Poage Bankshares, Inc., net of cash acquired of $518
|
—
|
|
502
|
|
—
|
|
|||
Net Cash Provided by (Used in) Investing Activities
|
44
|
|
(23,452
|
)
|
200
|
|
|||
|
|
|
|
||||||
Financing Activities
|
|
|
|
||||||
Repayment of long-term debt
|
—
|
|
(16,495
|
)
|
—
|
|
|||
Proceeds from sale of capital securities
|
—
|
|
495
|
|
—
|
|
|||
Dividends paid
|
(35,547
|
)
|
(29,583
|
)
|
(27,120
|
)
|
|||
Issuance of common stock
|
—
|
|
—
|
|
28,408
|
|
|||
Purchases of treasury stock
|
(19,431
|
)
|
(20,271
|
)
|
—
|
|
|||
Exercise of stock options
|
526
|
|
1,164
|
|
732
|
|
|||
Net Cash (Used in) Provided by Financing Activities
|
(54,452
|
)
|
(64,690
|
)
|
2,020
|
|
|||
Increase (Decrease) in Cash and Cash Equivalents
|
5,550
|
|
(38,410
|
)
|
32,511
|
|
|||
Cash and cash equivalents at beginning of year
|
20,621
|
|
59,031
|
|
26,520
|
|
|||
Cash and Cash Equivalents at End of Year
|
$
|
26,171
|
|
$
|
20,621
|
|
$
|
59,031
|
|
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
||||||||
|
|
|
|
|
||||||||
2019
|
|
|
|
|
||||||||
Interest income
|
$
|
48,933
|
|
$
|
50,238
|
|
$
|
49,981
|
|
$
|
48,548
|
|
Taxable equivalent adjustment
|
208
|
|
202
|
|
192
|
|
189
|
|
||||
Interest income (FTE)
|
49,141
|
|
50,440
|
|
50,173
|
|
48,737
|
|
||||
Interest expense
|
8,867
|
|
9,327
|
|
9,444
|
|
8,701
|
|
||||
Net interest income
|
40,274
|
|
41,113
|
|
40,729
|
|
40,036
|
|
||||
(Recovery of) provision for loan losses
|
(849
|
)
|
(600
|
)
|
274
|
|
(75
|
)
|
||||
Non-interest income
|
15,925
|
|
17,825
|
|
16,698
|
|
18,042
|
|
||||
Non-interest expense
|
29,411
|
|
30,772
|
|
28,397
|
|
29,034
|
|
||||
Income before income tax expense
|
27,637
|
|
28,766
|
|
28,756
|
|
29,119
|
|
||||
Income tax expense
|
5,810
|
|
5,813
|
|
6,193
|
|
6,319
|
|
||||
Taxable equivalent adjustment
|
(208
|
)
|
(202
|
)
|
(192
|
)
|
(189
|
)
|
||||
Net income available to common shareholders
|
$
|
21,619
|
|
$
|
22,751
|
|
$
|
22,371
|
|
$
|
22,611
|
|
|
|
|
|
|
||||||||
Net earnings allocated to common shareholders
|
$
|
21,433
|
|
$
|
22,554
|
|
$
|
22,179
|
|
$
|
22,409
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
$
|
1.31
|
|
$
|
1.38
|
|
$
|
1.36
|
|
$
|
1.38
|
|
Diluted earnings per common share
|
1.30
|
|
1.38
|
|
1.36
|
|
1.38
|
|
||||
Average common shares outstanding:
|
|
|
|
|
||||||||
Basic
|
16,411
|
|
16,368
|
|
16,271
|
|
16,207
|
|
||||
Diluted
|
16,429
|
|
16,386
|
|
16,289
|
|
16,230
|
|
||||
|
|
|
|
|
||||||||
2018
|
|
|
|
|
||||||||
Interest income
|
$
|
37,644
|
|
$
|
39,180
|
|
$
|
42,729
|
|
$
|
44,348
|
|
Taxable equivalent adjustment
|
187
|
|
187
|
|
187
|
|
194
|
|
||||
Interest income (FTE)
|
37,831
|
|
39,367
|
|
42,916
|
|
44,542
|
|
||||
Interest expense
|
4,997
|
|
5,607
|
|
7,171
|
|
7,917
|
|
||||
Net interest income
|
32,834
|
|
33,760
|
|
35,745
|
|
36,625
|
|
||||
Provision for (recovery of) loan losses
|
181
|
|
(2,064
|
)
|
(27
|
)
|
(400
|
)
|
||||
Non-interest income
|
14,492
|
|
15,611
|
|
15,753
|
|
14,706
|
|
||||
Non-interest expense
|
24,937
|
|
24,911
|
|
25,040
|
|
38,178
|
|
||||
Income before income tax expense
|
22,208
|
|
26,524
|
|
26,485
|
|
13,553
|
|
||||
Income tax expense
|
4,405
|
|
5,358
|
|
5,606
|
|
2,646
|
|
||||
Taxable equivalent adjustment
|
(187
|
)
|
(187
|
)
|
(187
|
)
|
(194
|
)
|
||||
Net income available to common shareholders
|
$
|
17,616
|
|
$
|
20,979
|
|
$
|
20,692
|
|
$
|
10,713
|
|
|
|
|
|
|
||||||||
Net earnings allocated to common shareholders
|
$
|
17,421
|
|
$
|
20,768
|
|
$
|
20,491
|
|
$
|
10,623
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
$
|
1.13
|
|
$
|
1.36
|
|
$
|
1.34
|
|
$
|
0.68
|
|
Diluted earnings per common share
|
1.13
|
|
1.35
|
|
1.33
|
|
0.68
|
|
||||
Average common shares outstanding:
|
|
|
|
|
||||||||
Basic
|
15,414
|
|
15,326
|
|
15,340
|
|
15,603
|
|
||||
Diluted
|
15,436
|
|
15,345
|
|
15,358
|
|
15,618
|
|
|
For the Year Ended December 31,
|
||||||||
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
Net income available to common shareholders
|
$
|
89,352
|
|
$
|
70,002
|
|
$
|
54,310
|
|
Less: earnings allocated to participating securities
|
(806
|
)
|
(654
|
)
|
(591
|
)
|
|||
Net earnings allocated to common shareholders
|
$
|
88,546
|
|
$
|
69,348
|
|
$
|
53,719
|
|
|
|
|
|
||||||
Distributed earnings allocated to common shares outstanding
|
$
|
35,542
|
|
$
|
32,483
|
|
$
|
27,497
|
|
Undistributed earnings allocated to common shares outstanding
|
53,004
|
|
36,865
|
|
26,222
|
|
|||
Net earnings allocated to common shareholders
|
$
|
88,546
|
|
$
|
69,348
|
|
$
|
53,719
|
|
|
|
|
|
||||||
Average shares outstanding, basic
|
16,314
|
|
15,421
|
|
15,412
|
|
|||
Effect of dilutive securities
|
19
|
|
18
|
|
24
|
|
|||
Average shares outstanding, diluted
|
16,333
|
|
15,439
|
|
15,436
|
|
|||
|
|
|
|
||||||
Basic earnings per share
|
$
|
5.43
|
|
$
|
4.50
|
|
$
|
3.49
|
|
Diluted earnings per share
|
$
|
5.42
|
|
$
|
4.49
|
|
$
|
3.48
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
|
|
Unrealized
|
|
||||||
|
|
Gains (Losses) on
|
|
||||||
|
Defined Benefit
|
Securities
|
|
||||||
|
Pension Plans
|
Available-for-Sale
|
Total
|
||||||
|
|
|
|
||||||
Balance at December 31, 2017
|
$
|
(5,033
|
)
|
$
|
(611
|
)
|
$
|
(5,644
|
)
|
|
|
|
|
||||||
Other comprehensive loss before reclassifications
|
(963
|
)
|
(5,343
|
)
|
(6,306
|
)
|
|||
Amounts reclassified from other comprehensive loss
|
125
|
|
—
|
|
125
|
|
|||
|
(838
|
)
|
(5,343
|
)
|
(6,181
|
)
|
|||
|
|
|
|
||||||
Adoption of ASU No. 2016-01
|
—
|
|
(2,657
|
)
|
(2,657
|
)
|
|||
|
|
|
|
||||||
Balance at December 31, 2018
|
$
|
(5,871
|
)
|
$
|
(8,611
|
)
|
$
|
(14,482
|
)
|
|
|
|
|
||||||
Other comprehensive (loss) income before reclassifications
|
(399
|
)
|
20,775
|
|
20,376
|
|
|||
Amounts reclassified from other comprehensive income (loss)
|
—
|
|
(54
|
)
|
(54
|
)
|
|||
|
(399
|
)
|
20,721
|
|
20,322
|
|
|||
|
|
|
|
||||||
Balance at December 31, 2019
|
$
|
(6,270
|
)
|
$
|
12,110
|
|
$
|
5,840
|
|
|
Amount reclassified from Other Comprehensive Income (Loss)
|
Affected line item
|
||||||||
|
December 31,
|
in the Consolidated
|
||||||||
|
2019
|
2018
|
2017
|
Statements of Income
|
||||||
|
|
|
|
|
||||||
Securities available-for-sale:
|
|
|
|
|
||||||
Net securities gains reclassified into earnings
|
$
|
(69
|
)
|
$
|
—
|
|
$
|
(4,476
|
)
|
Gains on sale of investment securities
|
Related income tax expense
|
15
|
|
—
|
|
1,657
|
|
Income tax expense
|
|||
Net effect on accumulated other comprehensive income (loss)
|
$
|
(54
|
)
|
$
|
—
|
|
$
|
(2,819
|
)
|
|
|
|
|
|
|
||||||
Defined benefit pension plans:
|
|
|
|
|
||||||
Gain on termination of defined benefit plan
|
$
|
—
|
|
$
|
163
|
|
$
|
—
|
|
Other expense
|
Related income tax expense
|
—
|
|
(38
|
)
|
—
|
|
Income tax expense
|
|||
Net effect on accumulated other comprehensive income (loss)
|
$
|
—
|
|
$
|
125
|
|
$
|
—
|
|
|
|
Point of Revenue
|
|
|
||||
|
Recognition
|
2019
|
2018
|
||||
Major revenue streams
|
|
|
|
||||
Service charges
|
At a point in time and over time
|
$
|
31,515
|
|
$
|
29,704
|
|
Bankcard revenue
|
At a point in time
|
21,093
|
|
18,369
|
|
||
Trust and investment management fee income
|
Over time
|
7,159
|
|
6,529
|
|
||
Other income
|
At a point in time and over time
|
4,000
|
|
2,851
|
|
||
Net revenue from contracts with customers
|
|
63,767
|
|
57,453
|
|
||
Non-interest income within the scope of other GAAP topics
|
|
4,723
|
|
3,111
|
|
||
Total non-interest income
|
|
$
|
68,490
|
|
$
|
60,564
|
|
(a)
|
Management’s annual report on internal control over financial reporting appears on page 50 of the Annual Report on Form 10-K of City Holding Company for the year ended December 31, 2019.
|
(b)
|
The attestation report of the Company's independent registered public accounting firm appears on page 51 of the Annual Report on Form 10-K of City Holding Company for the year ended December 31, 2019.
|
(c)
|
The Company did not have any changes in internal control over financial reporting during its fourth quarter for the year ending December 31, 2019, that materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.
|
(a)
|
|
(1)
|
|
Financial Statements. Reference is made to Part II, Item 8, of this Annual Report on Form 10-K.
|
|
|
(2)
|
|
Financial Statement Schedules. These schedules are omitted as the required information is inapplicable or the information is presented in the consolidated financial statements or related notes.
|
|
|
(3)
|
|
Exhibits. The exhibits listed in the “Exhibit Index” on pages 108-110 of this Annual Report on Form 10-K included herein are filed herewith or incorporated by reference from previous filings.
|
(b)
|
|
See (a) (3) above.
|
||
(c)
|
|
See (a) (1) and (2) above.
|
Exhibit
|
Description
|
2(a)
|
|
2(b)
|
|
2(c)
|
|
2(d)
|
|
3(a)
|
Articles of Incorporation of City Holding Company (attached to, and incorporated by reference from, Amendment No. 1 to City Holding Company’s Registration Statement on Form S-4, Registration No. 2-86250, filed November 4, 1983 with the Securities and Exchange Commission).
|
3(b)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated March 6, 1984 (attached to, and incorporated by reference from, City Holding Company's Form 8-K Report dated March 7, 1984, and filed with the Securities and Exchange Commission on March 22, 1984).
|
3(c)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated March 4, 1986 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1986, filed March 31, 1987 with the Securities and Exchange Commission).
|
3(d)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated September 29, 1987 (attached to and incorporated by reference from, City Holding Company's Registration Statement on Form S-4, Registration No. 33-23295, filed with the Securities and Exchange Commission on August 3, 1988).
|
3(e)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 6, 1991 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1991, filed March 17, 1992 with the Securities and Exchange Commission).
|
3(f)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 7, 1991 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1991, filed March 17, 1992 with the Securities and Exchange Commission).
|
3(g)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated August 1, 1994 (attached to, and incorporated by reference from, City Holding Company's Form 10-Q Quarterly Report for the quarter ended September 30, 1994, filed November 14, 1994 with the Securities and Exchange Commission).
|
3(h)
|
|
3(i)
|
|
3(j)
|
|
3(k)
|
|
4(a)
|
|
4(b)
|
4(c)
|
|
10(a)
|
|
10(b)
|
|
10(c)
|
|
10(d)
|
|
10(e)
|
|
10(f)
|
|
10(g)
|
|
10(h)
|
|
10(i)
|
|
10(j)
|
|
10(k)
|
|
10(l)
|
|
21
|
|
23
|
|
23.1
|
|
24
|
Power of Attorney (included on the signature page hereof)
|
31(a)
|
|
31(b)
|
32(a)
|
|
32(b)
|
|
101
|
Interactive Data File - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
101.SCH
|
XBRL Taxonomy Extension Schema*
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase*
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase*
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase*
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase*
|
Date:
|
February 27, 2020
|
|
City Holding Company
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Charles R. Hageboeck, Ph.D.
|
|
|
|
|
Charles R. Hageboeck, Ph.D.
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ David L. Bumgarner
|
|
|
|
|
David L. Bumgarner
|
|
|
|
|
Executive Vice President, Chief Financial Officer and Principal Accounting Officer
|
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
/s/ C. Dallas Kayser
|
|
/s/ Charles R. Hageboeck, Ph.D.
|
C. Dallas Kayser
|
|
Charles R. Hageboeck, Ph.D.
|
Chairman
|
|
Director, President, and Chief Executive Officer
|
|
|
|
|
|
|
/s/ Thomas L. Burnette
|
|
/s/ Tracy W. Hylton, II
|
Thomas L. Burnette
|
|
Tracy W. Hylton, II
|
Director
|
|
Director
|
|
|
|
|
|
|
/s/ John R. Elliot
|
|
/s/ J. Thomas Jones
|
John R Elliot
|
|
J. Thomas Jones
|
Director
|
|
Director
|
|
|
|
|
|
|
/s/ Charles W. Fairchilds
|
|
/s/ James L. Rossi
|
Charles W. Fairchilds
|
|
James L. Rossi
|
Director
|
|
Director
|
|
|
|
|
|
|
/s/ William H. File, III
|
|
/s/ Sharon H. Rowe
|
William H. File, III
|
|
Sharon H. Rowe
|
Director
|
|
Director
|
|
|
|
|
|
|
/s/ Robert D. Fisher
|
|
/s/ Diane Strong-Treister
|
Robert D. Fisher
|
|
Diane Strong-Treister
|
Director
|
|
Director
|
|
|
|
|
|
|
/s/ Jay C. Goldman
|
|
|
Jay C. Goldman
|
|
|
Director
|
|
|
|
|
|
|
|
|
•
|
Our Bylaws limit the ability of shareholders to call a special meeting except in compliance with the procedures describe above, which require three or more of our shareholders holding together not less than ten percent of the capital stock of the Company to request a special meeting;
|
•
|
Our board of directors fixes the size of the board of directors, may create new directorships, and may appoint new directors to serve in such newly-created positions until the next election of one or more directors by shareholders; and
|
•
|
We have advance notice procedures with respect to shareholder proposals and the nomination of candidates for elections as directors.
|
City National Bank of West Virginia
|
|
|
3601 MacCorkle Avenue S.E.
|
|
Insured Depository
|
Charleston, West Virginia
|
National Banking Association
|
Institution
|
|
|
|
City Financial Corporation
|
|
Inactive Securities
|
3601 MacCorkle Avenue, S.E.
|
|
Brokerage and Investment
|
Charleston, West Virginia
|
West Virginia Corporation
|
Advisory Company
|
|
|
|
City Mortgage Corporation
|
|
Inactive Mortgage Banking
|
Pittsburgh, Pennsylvania
|
Pennsylvania Corporation
|
Company
|
|
|
|
City Capital Management Company
|
|
|
300 Delaware Avenue
|
|
Capital Management
|
Wilmington, Delaware
|
Delaware Corporation
|
Company
|
|
|
|
Town Square Statutory Trust I
|
|
|
25 Gatewater Road
|
|
Special-purpose Statutory
|
Cross Lanes, West Virginia
|
Delaware Business Trust
|
Trust
|
1)
|
Registration Statement (Form S-8 No. 333-87667) of City Holding Company pertaining to the 1993 Incentive Plan,
|
2)
|
Registration Statement (Form S-8 No. 333-115282) of City Holding Company pertaining to the 2003 Incentive Plan, and
|
3)
|
Registration Statement (Form S-8 No. 333-189055) of City Holding Company pertaining to the 2013 Incentive Plan;
|
1)
|
Registration Statement (Form S-8 No. 333-87667) of City Holding Company pertaining to the 1993 Incentive Plan,
|
2)
|
Registration Statement (Form S-8 No. 333-115282) of City Holding Company pertaining to the 2003 Incentive Plan,
|
3)
|
Registration Statement (Form S-8 No. 333-189055) of City Holding Company pertaining to the 2013 Incentive Plan, and
|
1.
|
I have reviewed this Annual Report on Form 10-K of City Holding Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(a)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Charles R. Hageboeck
|
Charles R. Hageboeck
|
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of City Holding Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such persons performing the equivalent functions)
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(a)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ David L. Bumgarner
|
David L. Bumgarner
|
Executive Vice President and Chief Financial Officer and Principal Accounting Officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Charles R. Hageboeck
|
|
|
Charles R. Hageboeck
|
|
|
President and Chief Executive Officer
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ David L. Bumgarner
|
|
|
David L. Bumgarner
|
|
|
Executive Vice President, Chief Financial Officer and Principal Accounting Officer
|
|