City Holding Company Announces Record Earnings

CHARLESTON, W.Va., Jan. 23  /PRNewswire-FirstCall/ -- City Holding Company, "the Company" (NASDAQ:CHCO), a $2.5 billion bank holding company headquartered in Charleston, today announced net income for the fourth quarter of  $13.1 million, or diluted earnings per share of $0.72 compared to $11.1 million, or $0.66 per diluted share in the fourth quarter of 2004, a 9.1% increase.  For the fourth quarter of 2005, the Company achieved a return on assets of 2.10%, a return on equity of 17.66%, a net interest margin of 4.55%, and an efficiency ratio of 46.6%.

For the full year of 2005, the Company reported net income of $50.3 million, or diluted earnings per share of $2.84 compared to $46.3 million, or diluted earnings per share of $2.75 during 2004.  The results for 2004 included income of $3.2 million net of associated expenses and taxes, or $0.19 per diluted share, recognized in connection with the settlement of a derivative action brought against certain current and former directors and former executive officers of City Holding Company and City National Bank seeking to recover alleged damages on behalf of City Holding Company and City National Bank.  Also, the Company recorded a provision for loan losses of $1.4 million in 2005 as compared to no provision for loan losses during 2004.  Return on assets for the full year was 2.09%, return on equity was 18.98%, the net interest margin was 4.49%, and the efficiency ratio was 46.7%.

Charles R. "Skip" Hageboeck, Chief Executive Officer and President, commented, "I am proud of management and staff efforts that produced record earnings during 2005.  The Company experienced success not only by maintaining extraordinary financial performance, but also by positioning the Company for growth in its core markets.  This occurred despite the revenues associated with the legal settlement during 2004 and recording a provision for loan loss expense during the last two quarters in 2005 for the first time since the second quarter of 2002.  City's net interest income increased despite a substantial decline in balances of high yielding previously securitized loans, and our net margin improved 20 basis points from 2004's net interest margin. Fee income grew by 12% after adjusting for the proceeds of the 2004 legal settlement. Expenses, as evidenced by the efficiency ratio, were managed tightly, and the bank's asset quality improved. Additionally, we successfully integrated Classic Bancshares, Inc. ("Classic") into the City franchise.  This acquisition added total assets of $338 million, net loans of $254 million, and deposits of $252 million to the Company.  Finally, we accomplished all of this while successfully transitioning to a new management team.  Based on the success the Company enjoyed in 2005, I am confident we are positioned to continue our performance on behalf of our shareholders during 2006."

Net Interest Income

The Company's tax equivalent net interest income increased $4.0 million, or 18.2%, from $21.9 million during the fourth quarter of 2004 to $25.8 million during the fourth quarter of 2005.  The increase was primarily attributable to the acquisition of Classic ($2.8 million) as well as increased net interest income as a result of a widening of the net interest margin and growth in the Company's traditional loan portfolio.  Exclusive of the Classic acquisition, net interest income increased $1.2 million, or 5.6%, from the fourth quarter of 2004 to the fourth quarter of 2005. This increase was due primarily to an increase of $74.5 million, or 5.8%, in the average balances of traditional loans outstanding and a 78 basis points increase in the yield on such loans.  These increases were partially offset by increased interest expense.  The net interest margin for the fourth quarter of 2005 of 4.55% represented a 30 basis point increase from the fourth quarter of 2004 net interest margin of 4.25% and represented a 4 basis point increase from the net interest margin of 4.51% for the linked quarter ended September 30, 2005.

For the full year, the Company's tax equivalent net interest income increased $10.1 million, or 11.5%, from $88.0 million in 2004 to $98.1 million in 2005.  The acquisition of Classic, along with an increased interest rate environment and growth in the Company's traditional loan portfolio, were largely responsible for this increase.  The Classic acquisition contributed $7.5 million of net interest income during 2005.  Interest income from previously securitized loans and retained interests decreased between 2004 and 2005. The average balances of previously securitized loans and retained interests decreased from $83.4 million for the year ended December 31, 2004 to $42.9 million for the year ended December 31, 2005.  This decrease was partially mitigated as the yield on previously securitized loans rose from 17.11% for the year ended December 31, 2004 to 26.60% for the year ended December 31, 2005 (see Previously Securitized Loans).  The net result of the decreases in balances of 48.6% and the increased yield was a decrease in interest income from previously securitized loans and retained interests of $3.1 million from 2004 to 2005.  Therefore, net interest income, exclusive of the Classic acquisition and interest income from previously securitized loans and retained interests, increased $5.7 million, or 6.5%.  This increase was primarily attributable to increases in average balances of traditional loan products of $66.7 million, or 5.3%.  The yield on these loans increased 49 basis points due to increases by the Federal Reserve in the Federal Funds rate and the Company's positioning of its balance sheet to benefit from such rising rates. The increases in loan balances and loan yields more than offset the corresponding increase in rates paid on depository balances.

The net interest margin for the year ended December 31, 2005 of 4.49% represented a 20 basis point increase from the year ended December 31, 2004's net interest margin of 4.29%. To offset the effects of decreasing balances of high yielding previously securitized loans, the Company positioned its balance sheet to benefit from rising interest rates.  Since December 2004, the Federal Funds rate has increased 200 basis points from 2.25% to 4.25% in December 2005.  To manage its interest rate risk, the Company has focused on the origination of variable rate products in its traditional lending areas of commercial real estate and residential real estate loans.

Credit Quality

At December 31, 2005, the Allowance for Loan Losses ("ALLL") was $16.8 million or 1.04% of total loans outstanding and 402% of non-performing loans compared to $17.8 million or 1.31% of loans outstanding and 487% of non- performing loans at December 31, 2004, and $17.8 million or 1.09% of loans outstanding and 487% of non-performing loans at September 30, 2005.  As a result of the Company's quarterly analysis of the adequacy of the ALLL, the Company recorded a provision for loan losses of $800,000 in the fourth quarter of 2005.  During the past three years, management has implemented a number of strategic initiatives to strengthen the loan portfolio including tightening credit standards, changing the overall mix of the portfolio to include a higher proportion of real estate secured loans, and identifying and charging off or resolving problem loans.  As a result of these initiatives, the quality of the Company's loan portfolio has been solid over the past three years as evidenced by the stability of its ratio of non-performing assets to total loans and other real estate owned which was 0.28% on December 31, 2005.  As the Company's asset quality has consistently improved, the required level of the ALLL has decreased.  The provision for loan losses recorded during the third and fourth quarters of 2005 was the result of an increase in loss trends for overdraft deposit accounts and credit card loans, and growth in the outstanding balances of commercial real estate loans during the quarters.  The Company has continued to experience growth in commercial real estate loans, with average balances increasing by $106 million from the fourth quarter of 2004 to fourth quarter of 2005.  While these trends have required the Company to increase the provision from the third quarter to the fourth quarter, the amount of provision recorded was favorably impacted by continued improvement in the quality of the loan portfolio.  Specifically, two problem credits for which the Company had previously allocated $800,000 in reserves were refinanced by other banks during the fourth quarter.  As a result, the reserves allocated to these credits were no longer required, favorably impacting the provision required by $800,000 for the fourth quarter.

The Company had net charge-offs of $1.8 million for the fourth quarter of 2005, with depository accounts representing $0.7 million of this total. While charge-offs on depository accounts were appropriately taken against the ALLL, the revenue associated with depository accounts was reflected in service charges and has been steadily growing as the core base of checking accounts has grown.  Net charge-offs on installment loans were $0.5 million for the quarter ended December 31, 2005, which equaled the net charge-offs for consumer loans for the first three quarters of 2005 combined.  This increase was attributable to increased bankruptcy notices received in conjunction with new bankruptcy legislation that took effect in the fourth quarter and is consistent with banking trends nationally.  Net charge-offs for commercial real estate loans were $0.5 million for the quarter ended December 31, 2005. This increase primarily relates to two credits that had been previously identified with appropriate amounts of reserve allocated for each credit.

The ALLL as a percentage of loans outstanding is 1.04% at December 31, 2005, compared to the average of the Company's peer group of 1.25% for the most recently reported quarter.  The Company's strong asset quality is the primary reason for this difference. At December 31, 2005, non-performing assets as a percentage of loans and other real estate owned were 0.27%. Average non-performing assets as a percentage of loans and other real estate owned for the Company's peer group for the most recently reported quarter was 0.67%. Another contributing factor that has enabled the Company to maintain its allowance at lower levels than peers is the composition of the Company's loan portfolio, which is weighted toward more residential mortgage loans and fewer non-real estate secured commercial loans than its peers.  The Company believes its methodology for determining the adequacy of its ALLL adequately provides for probable losses inherent in the loan portfolio and produces a provision for loan losses that is directionally consistent with changes in asset quality and loss experience.

Non-interest Income

Net of investment securities gains, non-interest income increased $1.6 million, or 13.3%, to $13.4 million in the fourth quarter of 2005 as compared to $11.8 million in the fourth quarter of 2004.  The largest source of non-interest income is service charges from depository accounts, which increased $1.8 million, or 21.3%, from $8.7 million during the fourth quarter of 2004 to $10.5 million during the fourth quarter of 2005. This increase was partially due to the Classic acquisition, which accounted for $0.8 million, as well as an increase in the utilization of services by the Company's expanding customer base.

For the full year, net of investment securities gains and legal settlements, non-interest income increased $6.5 million, or 15.0%, from $43.4 million in 2004 to $49.9 million in 2005.  Service charges increased 19.9% from $32.6 million in 2004 to $39.1 million in 2005.  The acquisition of Classic accounted for $2.0 million of this increase, with the remainder of $4.5 million being attributable to increased services utilized by customers.

Non-interest Expenses

Non-interest expenses increased $1.2 million from $17.1 million in the fourth quarter of 2004 to $18.3 million in the fourth quarter of 2005.  The Classic acquisition increased non-interest expenses by $1.4 million during the fourth quarter of 2005.  Non-interest expenses for the fourth quarter of 2005 also included a loss on interest rate floors of approximately $1.4 million, with $0.9 million ($0.5 million after tax) relating to changes in market value in the second and third quarters that had previously been included in other comprehensive income.  During the second, third, and fourth quarters of 2005, the Company entered into interest rate floor arrangements to protect the future income stream from certain variable rate loans should interest rates decline below certain specified levels. During the fourth quarter of 2005 management reviewed the Company's hedging documentation and accounting treatment of the interest rate floors and determined that the changes in the market value of the floors should be charged to operations.  Offsetting increased expenses associated with the Classic acquisition and hedge accounting, the Company experienced a decrease of $1.9 million in salary expense, related to an obligation to five executive officers for severance payments as provided under their respective employment agreements, which had been recorded in the fourth quarter of 2004.  Excluding the impact of the Classic acquisition, hedge accounting, and executive severance obligations, non-interest expenses increased by $0.2 million in the fourth quarter of 2005 as compared to the fourth quarter of 2004.

For the full year, non-interest expenses increased $2.8 million, or 4.2%, from $66.3 million in 2004 to $69.1 million in 2005.  Non-interest expenses increased $3.4 million due to the Classic acquisition, and $1.4 million was related to the fair value adjustment associated with the interest rate floors. Compensation expense decreased $2.4 million primarily due to costs incurred in 2004 in regard to executive severance obligations as previously discussed. Exclusive of the Classic acquisition, hedge accounting, and executive severance obligations, non-interest expenses increased by $0.4 million between 2004 and 2005.  Specifically, professional fees and litigation expense decreased $1.2 million from 2004 to 2005 due to costs incurred during 2004 associated with the derivative action previously discussed.  Other expenses increased $1.0 million due to increased customer usage of electronic banking services and increased franchise taxes.  Finally, advertising expenses increased $0.6 million from 2004 to 2005 due to an expanded territory resulting from the Classic acquisition and the Company's focused efforts to attract and grow customer relationships.

Overall, the Company's efficiency ratio improved from 48.5% for the year ended December 31, 2004 to 46.7% for the year ended December 31, 2005, reflecting ongoing strength in managing expenses while increasing revenues. The average efficiency ratio for the Company's peer group for the most recently reported quarter was 57.4%.

Previously Securitized Loans

Between 1997 and 1999, the Company originated and securitized $760 million in 125% loan to value junior-lien underlying mortgages in six separate pools. The Company had a retained interest in the residual cash flows associated with these underlying mortgages after satisfying priority claims. Principal amounts owed to investors in the securitizations were evidenced by notes that were subject to redemption under certain circumstances. When the notes were redeemed during 2003 and 2004, the Company became the beneficial owner of the mortgage loans and recorded the loans as "Previously Securitized Loans" within the loan portfolio.  At December 31, 2005, the Company reported "Previously Securitized Loans" of $30.3 million compared to $58.4 million at December 31, 2004, a decrease of 48.2%.  As a result of this decrease, interest income associated with previously securitized loans and retained interests decreased by $3.1 million to $11.4 million for the year ended December 31, 2005 compared to $14.5 million for the year ended December 31, 2004.  This decrease in interest income was offset by targeted loan growth in the commercial real estate and residential real estate loan portfolios and by an increase in the net interest margin yield due to the Company's positioning of its balance sheet to benefit from rising interest rates.

Because the carrying value of the previously securitized loans incorporates discounts for expected prepayment and default rates, the carrying value of the loans is generally less than the contractual outstanding balance of the loans. As of December 31, 2005, the contractual outstanding balances of the mortgages securitized were $48.1 million while the carrying value of these assets was $30.3 million. The difference between the carrying value and the contractual outstanding balance of previously securitized loans is accreted into interest income over the life of the loans. An impairment charge on previously securitized loans would be provided through the Company's provision and allowance for loan losses if the discounted present value of estimated future cash flows declines below the recorded value of previously securitized loans.

The Company estimates the net carrying value of previously securitized loan balances to decrease as shown below:

   December 31, 2006        $21 million
   December 31, 2007        $15 million
   December 31, 2008        $11 million
   December 31, 2009        $8 million



The yield on the previously securitized loans was 31.03% for the quarter ended December 31, 2005, compared to 30.14% for the quarter ended September 30, 2005, and 16.70% for the quarter ended December 31, 2004.  For the year ended December 31, 2005, the yield on the previously securitized loans was 26.60% compared to 17.11% for the year ended December 31, 2004.  The yield on the previously securitized loans has increased due to default rates being less than previously estimated and balances prepaying faster than previously estimated.  In addition, the Company assumed the servicing of all of the pool balances during the second quarter of 2005.  This also favorably impacted the yield realized on the previously securitized loans due to the elimination of the servicing fees previously being paid to the external servicing agent and increased internal collection efforts resulting in enhanced levels of recoveries on previously charged-off loans.  All of these factors have increased the projected cash flows from the previously securitized loans and the Company now estimates that the yield on these loans will be in the range of 34% to 36% in the future.

Capitalization and Liquidity

One of the Company's strengths is that it is highly profitable while maintaining strong liquidity and capital. With respect to liquidity, the Company's loan to deposit ratio was 83.6% and the loan to asset ratio was 64.4% at December 31, 2005. The Company maintained investment securities totaling 24.2% of assets as of this date. Further, the Company's deposit mix is weighted heavily toward checking and saving accounts that fund 44.6% of assets at December 31, 2005. Time deposits fund 32.5% of assets at December 31, 2005, but very few of these deposits are in accounts that have balances of more than $150,000, reflecting the core retail orientation of the Company.

The Company is also strongly capitalized. Capitalization (as measured by average equity to average assets) was 11.03% for the year ended December 31, 2005 as a result of the Company's strong earnings. The Company's tangible equity ratio was 9.5% at December 31, 2005 compared with a tangible equity ratio of 9.5% at December 31, 2004.  Due to its continued strong earnings performance, the Company was able to maintain this ratio despite the completion of an acquisition during the second quarter of 2005 that was funded by cash of approximately 25% and the repurchase of 342,576 common shares of Company stock during 2005.  With respect to regulatory capital, at December 31, 2005, the Company's Leverage Ratio is 10.97%, the Tier I Capital ratio is 15.41%, and the Total Risk-Based Capital ratio is 16.38%. These regulatory capital ratios are significantly above levels required to be considered "well capitalized," which is the highest possible regulatory designation.

Other Events of Interest

On December 21, 2005, the Board approved a quarterly cash dividend of 25 cents per share payable January 31, 2006 to shareholders of record as of January 15, 2006.

On December 21, 2005, the Company accelerated the vesting schedule with regard to 20,000 value-vested options previously granted pursuant to the Company's 2003 Incentive Plan.  Based upon approximately 86,000 unvested options outstanding at December 31, 2005, the Company anticipates it will incur $0.2 million of expense in connection with the adoption of SFAS No. 123R, "Share Based Payment", which will be effective January 1, 2006, for the Company.

On January 11, 2006, the Company announced plans to improve its presence in downtown Charleston, WV, by leasing a new location and purchasing an adjacent drive-through facility it had previously leased.  By moving its downtown office to a larger space at One Bridge Place, City will offer an upgraded and more accessible banking center that will also become a base for commercial lending, trust, and private banking services.  The new downtown facility is expected to open in the first quarter of 2006.

City Holding Company is the parent company of City National Bank of West Virginia.  City National operates 67 branches across West Virginia, Eastern Kentucky and Southern Ohio.

Forward-Looking Information

This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such information involves risks and uncertainties that could result in the Company's actual results differing from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to; (1) the Company may incur additional loan loss provision due to negative credit quality trends in the future that may lead to a deterioration of asset quality; (2) the Company may incur increased charge-offs in the future; (3) the Company may experience increases in the default rates on previously securitized loans that would result in impairment losses or lower the yield on such loans; (4) the Company may continue to benefit from strong recovery efforts on previously securitized loans resulting in improved yields on these assets; (5)  the Company could have adverse legal actions of a material nature; (6) the Company may face competitive loss of customers; (7) the Company may be unable to manage its expense levels; (8) the Company may have difficulty retaining key employees; (9) changes in the interest rate environment may have results on the Company's operations materially different from those anticipated by the Company's market risk management functions; (10) changes in general economic conditions and increased competition could adversely affect the Company's operating results; (11) changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact the Company's operating results; and (12) the Company may experience difficulties growing loan and deposit balances.  Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

  CITY HOLDING COMPANY AND SUBSIDIARIES
  Financial Highlights
  (Unaudited)

                                           Three Months Ended
                                         December 31  December 31    Percent
                                             2005        2004        Change

  Earnings ($000s, except per share data):
    Net Interest Income (FTE)              $25,844     $21,870       18.17%
    Net Income                              13,089      11,087       18.06%
    Earnings per Basic Share                  0.72        0.67        7.46%
    Earnings per Diluted Share                0.72        0.66        9.09%

  Key Ratios (percent):
    Return on Average Assets                  2.10%       2.01%        4.22%
    Return on Average Equity                 17.66%      20.50%     (13.86)%
    Net Interest Margin                       4.55%       4.25%        7.10%
    Efficiency Ratio                         46.57%      51.03%      (8.74)%
    Average Shareholders' Equity to
     Average Assets                          11.87%       9.81%       21.00%

  Risk-Based Capital Ratios (a):
    Tier I                                   15.41%      15.47%      (0.39)%
    Total                                    16.38%      16.64%      (1.56)%

  Common Stock Data:
    Cash Dividends Declared per Share      $  0.25     $  0.22       13.64%
    Book Value per Share                     16.14       13.03       23.87%
    Market Value per Share:
      High                                   37.62       37.58        0.11%
      Low                                    32.68       31.85        2.61%
      End of Period                          35.95       36.24       (0.80)%

    Price/Earnings Ratio (b)                 12.48       13.52       (7.69)%



                                           Twelve Months Ended
                                         December 31  December 31    Percent
                                             2005        2004        Change

  Earnings ($000s, except per share data):
    Net Interest Income (FTE)              $98,097     $87,985       11.49%
    Net Income                              50,288      46,344        8.51%
    Earnings per Basic Share                  2.87        2.79        2.87%
    Earnings per Diluted Share                2.84        2.75        3.27%

  Key Ratios (percent):
    Return on Average Assets                  2.09%       2.10%      (0.08)%
    Return on Average Equity                 18.98%      22.43%     (15.40)%
    Net Interest Margin                       4.49%       4.29%       4.61%
    Efficiency Ratio                         46.66%      48.49%      (3.77)%
    Average Shareholders' Equity to
     Average Assets                          11.03%       9.34%      18.10%

  Common Stock Data:
    Cash Dividends Declared per Share      $  1.00      $ 0.88       13.64%
    Market Value per Share:
     High                                    39.21       37.58        4.34%
     Low                                     27.57       27.30        0.99%

  (a) December 31, 2005 risk-based capital ratios are estimated.
  (b) December 31, 2005 price/earnings ratio computed based on annualized
      fourth quarter 2005 earnings.



  CITY HOLDING COMPANY AND SUBSIDIARIES
  Financial Highlights
  (Unaudited)

  Book Value and Market Price Range per Share
                                                               Market Price
                          Book Value per Share               Range per Share
          March 31   June 30   September 30   December 31      Low     High

  2001      $ 8.82    $ 8.70         $ 8.37        $ 8.67   $ 5.13   $13.94
  2002        8.92      9.40           9.64          9.93    12.04    30.20
  2003       10.10     10.74          11.03         11.46    25.50    37.15
  2004       12.09     11.89          12.70         13.03    27.30    37.58
  2005       13.20     15.56          15.99         16.14    27.57    39.21

  Earnings per Basic Share

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

  2001      $(0.34)   $(1.19)        $(0.46)        $0.45     $(1.54)
  2002        0.38      0.45           0.53          0.56       1.92
  2003        0.56      0.73           0.69          0.64       2.62
  2004        0.66      0.80           0.66          0.67       2.79
  2005        0.70      0.72           0.73          0.72       2.87

  Earnings per Diluted Share

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

  2001      $(0.34)   $(1.19)        $(0.46)        $0.45     $(1.54)
  2002        0.38      0.45           0.52          0.55       1.90
  2003        0.55      0.72           0.68          0.63       2.58
  2004        0.65      0.79           0.65          0.66       2.75
  2005        0.69      0.71           0.72          0.72       2.84



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

                                             Three Months Ended December 31,
                                                   2005              2004

  Interest Income
    Interest and fees on loans                   $28,918           $21,511
    Interest on investment securities:
      Taxable                                      7,188             7,779
      Tax-exempt                                     497               437
    Interest on deposits in depository
     institutions                                     36                16
    Interest on federal funds sold                     -                 3
      Total Interest Income                       36,639            29,746

  Interest Expense
    Interest on deposits                           8,569             5,932
    Interest on short-term borrowings              1,049               424
    Interest on long-term debt                     1,446             1,756
      Total Interest Expense                      11,064             8,112
      Net Interest Income                         25,575            21,634
    Provision for loan losses                        800                 -
      Net Interest Income After Provision
       for Loan Losses                            24,775            21,634

  Non-Interest Income
    Investment securities gains                      125                32
    Service charges                               10,530             8,678
    Insurance commissions                            620               754
    Trust fee income                                 504               466
    Bank owned life insurance                        691             1,184
    Mortgage banking income                          228                70
    Other income                                     839               685
      Total Non-Interest Income                   13,537            11,869

  Non-Interest Expense
    Salaries and employee benefits                 8,416             9,578
    Occupancy and equipment                        1,569             1,560
    Depreciation                                   1,062               981
    Professional fees and litigation
     expense                                         486               571
    Postage, delivery, and statement
     mailings                                        728               589
    Advertising                                      710               600
    Telecommunications                               560               403
    Insurance and regulatory                         380               330
    Office supplies                                  388               210
    Repossessed asset (gains) losses, net
     of expenses                                     (28)              (31)
    Other expenses                                 4,068             2,340
      Total Non-Interest Expense                  18,339            17,131
      Income Before Income Taxes                  19,973            16,372
    Income tax expense                             6,884             5,285
      Net Income                                 $13,089           $11,087

  Basic earnings per share                       $  0.72           $  0.67
  Diluted earnings per share                     $  0.72           $  0.66
  Average Common Shares Outstanding:
      Basic                                       18,127            16,572
      Diluted                                     18,211            16,810



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

                                            Twelve Months Ended December 31,
                                                   2005              2004

  Interest Income
    Interest and fees on loans                   $103,714          $ 86,099
    Interest on investment securities:
      Taxable                                      29,804            30,110
      Tax-exempt                                    1,887             1,809
    Interest on retained interests                      -               808
    Interest on deposits in depository
     institutions                                     109                52
    Interest on federal funds sold                      4                 3
      Total Interest Income                       135,518           118,881

  Interest Expense
    Interest on deposits                           28,805            23,207
    Interest on short-term borrowings               3,369             1,082
    Interest on long-term debt                      6,264             7,582
      Total Interest Expense                       38,438            31,871
      Net Interest Income                          97,080            87,010
  Provision for loan losses                         1,400                 -
      Net Interest Income After Provision
       for Loan Losses                             95,680            87,010

  Non-Interest Income
    Investment securities gains                       151             1,173
    Service charges                                39,091            32,609
    Insurance commissions                           2,352             2,733
    Trust fee income                                2,025             2,026
    Bank owned life insurance                       2,779             2,931
    Mortgage banking income                           643               282
    Legal settlement                                    -             5,453
    Other income                                    3,050             2,829
      Total Non-Interest Income                    50,091            50,036

  Non-Interest Expense
    Salaries and employee benefits                 33,479            34,245
    Occupancy and equipment                         6,295             5,984
    Depreciation                                    4,096             3,932
    Professional fees and litigation
     expense                                        2,021             3,265
    Postage, delivery, and statement
     mailings                                       2,666             2,474
    Advertising                                     2,941             2,366
    Telecommunications                              2,248             1,820
    Insurance and regulatory                        1,496             1,323
    Office supplies                                 1,193             1,048
    Repossessed asset (gains) losses, net
     of expenses                                      (78)              (77)
    Loss on early extinguishment of debt                -               263
    Other expenses                                 12,756             9,690
      Total Non-Interest Expense                   69,113            66,333
      Income Before Income Taxes                   76,658            70,713
  Income tax expense                               26,370            24,369
      Net Income                                 $ 50,288          $ 46,344

  Basic earnings per share                       $   2.87          $   2.79
  Diluted earnings per share                     $   2.84          $   2.75
  Average Common Shares Outstanding:
      Basic                                        17,519            16,632
      Diluted                                      17,690            16,882



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

                                                Three Months Ended
                                       December 31, 2005  December 31, 2004

  Balance at September 1                        $290,432           $210,285

    Net income                                    13,089             11,087
    Other comprehensive income:
      Change in unrealized gain on
       securities available-for-sale              (3,701)            (2,255)
      Change in underfunded pension
       liability                                    (748)               (35)
    Reclassification of unrealized
     derivative losses                               543                  -
    Cash dividends declared ($0.25/share)         (4,522)                 -
    Cash dividends declared ($0.22/share)              -             (3,650)
    Exercise of 104,966 stock options              3,128                  -
    Exercise of 26,327 stock options                   -                648
    Purchase of 171,000 common shares of
     treasury                                     (6,080)                 -
  Balance at December 31                        $292,141           $216,080


                                               Twelve Months Ended
                                       December 31, 2005  December 31, 2004

  Balance at January 1                          $216,080           $190,690

    Net income                                    50,288             46,344
    Other comprehensive income:
      Change in unrealized gain on
       securities available-for-sale              (6,120)            (2,481)
      Change in underfunded pension
       liability                                    (748)               (35)
    Cash dividends declared ($1.00/share)        (17,716)                 -
    Cash dividends declared ($0.88/share)              -            (14,629)
    Issuance of 1,580,034 shares for
     acquisition of Classic Bancshares,
     net 108,173 owned and transferred to
     treasury                                     54,339                  -
    Issuance of 18,800 stock award shares            147                  -
    Exercise of 367,675 stock options              7,783                  -
    Exercise of 140,730 stock options                  -              2,048
    Purchase of 342,576 common shares for
     treasury                                    (11,912)                 -
    Purchase of 197,040 common shares for
     treasury                                          -             (5,857)
  Balance at December 31                        $292,141           $216,080



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

                                               Quarter Ended
                                Dec. 31  Sept. 30  June 30  March 31 Dec. 31
                                  2005     2005     2005      2005    2004

  Interest income               $36,639  $35,910  $32,676  $30,293  $29,746
  Taxable equivalent adjustment     269      273      241      233      236
  Interest income (FTE)          36,908   36,183   32,917   30,526   29,982
  Interest expense               11,064   10,290    9,054    8,030    8,112
  Net interest income            25,844   25,893   23,863   22,496   21,870
  Provision for loan losses         800      600        -        -        -
  Net interest income after
   provision for loan losses     25,044   25,293   23,863   22,496   21,870

  Noninterest income             13,537   13,012   12,098   11,444   11,869
  Noninterest expense            18,339   17,922   16,839   16,013   17,131
  Income before income taxes     20,242   20,383   19,122   17,927   16,608
  Income tax expense              6,884    6,938    6,532    6,016    5,285
  Taxable equivalent adjustment     269      273      241      233      236
  Net income                    $13,089  $13,172  $12,349  $11,678  $11,087

  Basic earnings per share      $  0.72  $  0.73  $  0.72  $  0.70  $  0.67
  Diluted earnings per share       0.72     0.72     0.71     0.69     0.66
  Cash dividends declared per
   share                           0.25     0.25     0.25     0.25     0.22

  Average Common Share (000s):
    Outstanding                  18,127   18,052   17,268   16,605   16,572
    Diluted                      18,211   18,238   17,477   16,812   16,810

  Net Interest Margin              4.55%    4.51%    4.42%    4.40%    4.25%



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

                                               Quarter Ended
                                Dec. 31  Sept. 30  June 30  March 31 Dec. 31
                                  2005     2005     2005      2005     2004

  Non-Interest Income:
    Service charges             $10,530  $10,433   $9,685   $8,443   $8,678
    Insurance commissions           620      595      545      592      754
    Trust fee income                504      468      462      591      466
    Bank owned life insurance       691      552      545      991    1,184
    Mortgage banking income         228      191      106      118       70
    Other income                    839      768      737      706      685
      Subtotal                   13,412   13,007   12,080   11,441   11,837
    Investment security gains       125        5       18        3       32
  Total Non-Interest Income     $13,537  $13,012  $12,098  $11,444  $11,869

  Non-Interest Expense:
    Salaries and employee
     benefits                   $ 8,416  $ 8,739  $ 8,404  $ 7,920  $ 9,578
    Occupancy and equipment       1,569    1,687    1,564    1,475    1,560
    Depreciation                  1,062    1,096      994      944      981
    Professional fees and
     litigation expense             486      456      514      565      571
    Postage, delivery, and
     statement mailings             728      670      615      653      589
    Advertising                     710      764      762      705      600
    Telecommunications              560      702      513      473      403
    Insurance and regulatory        380      385      365      366      330
    Office supplies                 388      327      275      203      210
    Repossessed asset (gains)
     losses, net of expenses        (28)     (35)     (16)       1      (31)
    Other expenses                4,068    3,131    2,849    2,708    2,340
  Total Non-Interest Expense    $18,339  $17,922  $16,839  $16,013  $17,131

  Employees (Full Time Equivalent)  770      768      767      689      691
  Branch Locations                   67       67       67       56       56



  CITY HOLDING COMPANY AND SUBSIDIARIES
  Consolidated Balance Sheets
  ($ in 000s)
                                              December 31        December 31
                                                 2005                2004
                                              (Unaudited)
  Assets
  Cash and due from banks                     $   81,822        $   52,854
  Interest-bearing deposits in
   depository institutions                         4,451             3,230
        Cash and cash equivalents                 86,273            56,084

  Investment securities available-for-sale,
   at fair value                                 549,966           620,034
  Investment securities held-to-maturity,
   at amortized cost                              55,397            59,740
        Total investment securities              605,363           679,774
  Loans:
    Residential real estate                      592,521           469,458
    Home equity                                  301,728           308,173
    Commercial real estate                       499,748           400,801
    Other commercial                             129,922            71,311
    Installment                                   40,000            18,145
    Indirect                                       3,580            10,324
    Credit card                                   15,072            18,126
    Previously securitized loans                  30,256            58,436
        Gross Loans                            1,612,827         1,354,774
  Allowance for loan losses                      (16,790)          (17,815)
        Net loans                              1,596,037         1,336,959

  Bank owned life insurance                       52,969            50,845
  Premises and equipment                          42,542            34,607
  Accrued interest receivable                     13,134             9,868
  Net deferred tax assets                         27,929            27,025
  Intangible assets                               59,559             6,255
  Other assets                                    18,791            11,813
        Total Assets                          $2,502,597        $2,213,230

  Liabilities
  Deposits:
    Noninterest-bearing                       $  376,076        $  319,425
    Interest-bearing:
      Demand deposits                            437,639           411,127
      Savings deposits                           302,571           281,466
      Time deposits                              812,134           660,705
        Total deposits                         1,928,420         1,672,723
  Short-term borrowings                          152,255           145,183
  Long-term debt                                  98,425           148,836
  Other liabilities                               31,356            30,408
        Total Liabilities                      2,210,456         1,997,150

  Stockholders' Equity
  Preferred stock, par value $25 per
   share: 500,000 shares authorized;
   none issued                                         -                 -
  Common stock, par value $2.50 per
   share: 50,000,000 shares authorized;
   18,499,282 and 16,919,248 shares
   issued at December 31, 2005 and
   December 31, 2004 less 395,465
   and 331,191 shares in treasury,
   respectively                                   46,249            42,298
  Capital surplus                                104,435            55,512
  Retained earnings                              160,747           128,175
  Cost of common stock in treasury               (11,278)           (8,761)
  Accumulated other comprehensive
   (loss) income:
    Unrealized (loss) gain on securities
     available-for-sale                           (4,839)            1,281
    Underfunded pension liability                 (3,173)           (2,425)
      Total Accumulated Other Comprehensive
       (Loss) Income                              (8,012)           (1,144)
      Total Stockholders' Equity                 292,141           216,080
      Total Liabilities and Stockholders'
       Equity                                 $2,502,597        $2,213,230



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

                                           Dec. 31     Sept. 30    June 30
                                             2005        2005        2005

  Residential real estate                $  592,521  $  596,184  $  596,893
  Home equity                               301,728     306,448     307,354
  Commercial real estate                    499,748     483,334     445,241
  Other commercial                          129,922     138,011     138,923
  Loans to depository institutions                -           -           -
  Installment                                40,000      42,844      48,668
  Indirect                                    3,580       4,658       6,048
  Credit card                                15,072      15,632      16,188
  Previously securitized loans               30,256      35,599      41,670
  Gross Loans                            $1,612,827  $1,622,710  $1,600,985



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

                                                March 31          Dec. 31
                                                  2005              2004

  Residential real estate                     $  463,869        $  469,458
  Home equity                                    302,262           308,173
  Commercial real estate                         409,064           400,801
  Other commercial                                66,485            71,311
  Loans to depository institutions                10,000                 -
  Installment                                     16,065            18,145
  Indirect                                         7,960            10,324
  Credit card                                     16,954            18,126
  Previously securitized loans                    50,588            58,436
  Gross Loans                                 $1,343,247        $1,354,774



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

                                           Three Months Ended December 31,
                                                         2005
                                            Average                 Yield/
                                            Balance     Interest     Rate
  Assets:
  Loan portfolio:
    Residential real estate               $  595,309    $ 8,365     5.57%
    Home equity                              303,977      5,318     6.94%
    Commercial real estate                   492,478      8,502     6.85%
    Other commercial                         133,863      2,426     7.19%
    Installment                               40,843      1,138    11.05%
    Indirect                                   4,112        118    11.39%
    Credit card                               15,278        482    12.52%
    Previously securitized loans              32,851      2,569    31.03%
  Total loans                              1,618,711     28,918     7.09%
  Securities:
    Taxable                                  580,845      7,188     4.91%
    Tax-exempt                                47,675        766     6.37%
      Total securities                       628,520      7,954     5.02%
  Deposits in depository institutions          5,188         36     2.75%
  Federal funds sold                               -          -         -
      Total interest-earning assets        2,252,419     36,908     6.50%
  Cash and due from banks                     52,828
  Bank premises and equipment                 42,432
  Other assets                               168,395
    Less:  Allowance for loan losses         (17,272)
       Total assets                       $2,498,802

  Liabilities:
  Interest-bearing demand deposits           442,130      1,207     1.08%
  Savings deposits                           302,904        684     0.90%
  Time deposits                              809,433      6,678     3.27%
  Short-term borrowings                      159,185      1,049     2.61%
  Long-term debt                             114,590      1,446     5.01%
    Total interest-bearing liabilities     1,828,242     11,064     2.40%
  Noninterest-bearing demand deposits        347,777
  Other liabilities                           26,287
  Stockholders' equity                       296,496
  Total liabilities and
   stockholders' equity                   $2,498,802
      Net interest income                               $25,844
      Net yield on earning assets                                   4.55%



                                           Three Months Ended December 31,
                                                         2004
                                            Average                 Yield/
                                            Balance     Interest     Rate
  Assets:
  Loan portfolio:
    Residential real estate               $  468,362    $ 6,646     5.65%
    Home equity                              307,712      3,966     5.13%
    Commercial real estate                   386,592      5,641     5.80%
    Other commercial                          68,816      1,015     5.87%
    Installment                               20,168        604    11.91%
    Indirect                                  11,584        321    11.02%
    Credit card                               17,756        534    11.96%
    Previously securitized loans              66,307      2,784    16.70%
  Total loans                              1,347,297     21,511     6.35%
  Securities:
    Taxable                                  656,511      7,779     4.71%
    Tax-exempt                                37,573        673     7.13%
      Total securities                       694,084      8,452     4.84%
  Deposits in depository institutions          4,753         16     1.34%
  Federal funds sold                             766          3     1.56%
      Total interest-earning assets        2,046,900     29,982     5.83%
  Cash and due from banks                     42,920
  Bank premises and equipment                 34,859
  Other assets                                99,641
    Less:  Allowance for loan losses         (18,332)
      Total assets                        $2,205,988

  Liabilities:
  Interest-bearing demand deposits           408,038        675     0.66%
  Savings deposits                           275,776        361     0.52%
  Time deposits                              661,131      4,896     2.95%
  Short-term borrowings                      131,202        424     1.29%
  Long-term debt                             174,923      1,756     3.99%
      Total interest-bearing liabilities   1,651,070      8,112     1.95%
  Noninterest-bearing demand deposits        315,759
  Other liabilities                           22,829
  Stockholders' equity                       216,330
    Total liabilities and
     stockholders' equity                 $2,205,988
      Net interest income                               $21,870
      Net yield on earning assets                                   4.25%



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

                                            Twelve Months Ended December 31,
                                                          2005
                                             Average                  Yield/
                                             Balance    Interest       Rate
  Assets:
  Loan portfolio:
    Residential real estate               $  545,280    $30,570     5.61%
    Home equity                              305,525     19,088     6.25%
    Commercial real estate                   447,243     28,756     6.43%
    Other commercial                         109,950      7,318     6.66%
    Loans to depository institutions           7,419        213     2.87%
    Installment                               33,327      3,592    10.78%
    Indirect                                   6,347        718    11.31%
    Credit card                               16,417      2,058    12.54%
    Previously securitized loans              42,859     11,401    26.60%
  Total loans                              1,514,367    103,714     6.85%
  Securities:
    Taxable                                  623,155     29,804     4.78%
    Tax-exempt                                43,767      2,904     6.64%
      Total securities                       666,922     32,708     4.90%
  Retained interest in securitized
   loans                                           -          -         -
  Deposits in depository institutions          4,609        109     2.36%
  Federal funds sold                             105          4     3.81%
      Total interest-earning assets        2,186,003    136,535     6.25%
  Cash and due from banks                     48,562
  Bank premises and equipment                 39,109
  Other assets                               145,899
    Less:  Allowance for loan losses         (17,515)
      Total assets                        $2,402,058

  Liabilities:
  Interest-bearing demand deposits           433,831      3,866     0.89%
  Savings deposits                           295,045      2,070     0.70%
  Time deposits                              743,725     22,869     3.07%
  Short-term borrowings                      157,264      3,369     2.14%
  Long-term debt                             137,340      6,264     4.56%
    Total interest-bearing liabilities     1,767,205     38,438     2.18%
  Noninterest-bearing demand deposits        341,873
  Other liabilities                           28,026
  Stockholders' equity                       264,954
    Total liabilities and
     stockholders' equity                 $2,402,058
      Net interest income                               $98,097
      Net yield on earning assets                                   4.49%



                                           Twelve Months Ended December 31,
                                                         2004
                                            Average                  Yield/
                                            Balance     Interest      Rate
  Assets:
  Loan portfolio:
    Residential real estate               $  454,890    $26,869     5.91%
    Home equity                              298,703     14,004     4.69%
    Commercial real estate                   367,599     20,684     5.63%
    Other commercial                          72,825      3,913     5.37%
    Loans to depository institutions           3,060         35     1.14%
    Installment                               25,343      2,895    11.42%
    Indirect                                  16,599      1,823    10.98%
    Credit card                               18,002      2,164    12.02%
    Previously securitized loans              80,151     13,712    17.11%
  Total loans                              1,337,172     86,099     6.44%
  Securities:
    Taxable                                  666,863     30,110     4.52%
    Tax-exempt                                38,169      2,784     7.29%
      Total securities                       705,032     32,894     4.67%
  Retained interest in securitized
   loans                                       3,300        808    24.48%
  Deposits in depository institutions          5,347         52     0.97%
  Federal funds sold                             193          3     1.55%
      Total interest-earning assets        2,051,044    119,856     5.84%
  Cash and due from banks                     43,616
  Bank premises and equipment                 34,804
  Other assets                               102,179
    Less:  Allowance for loan losses         (19,790)
      Total assets                        $2,211,853

  Liabilities:
  Interest-bearing demand deposits           405,865      2,599     0.64%
  Savings deposits                           279,174      1,456     0.52%
  Time deposits                              662,068     19,152     2.89%
  Short-term borrowings                      120,849      1,082     0.90%
  Long-term debt                             201,218      7,582     3.77%
    Total interest-bearing liabilities     1,669,174     31,871     1.91%
  Noninterest-bearing demand deposits        312,036
  Other liabilities                           24,072
  Stockholders' equity                       206,571
    Total liabilities and
     stockholders' equity                 $2,211,853
      Net interest income                               $87,985
      Net yield on earning assets                                   4.29%



  CITY HOLDING COMPANY AND SUBSIDIARIES
  Analysis of Risk-Based Capital
  (Unaudited) ($ in 000s)
                                           Dec. 31     Sept. 30    June 30
                                           2005 (a)      2005        2005

  Tier I Capital:
    Stockholders' equity                 $  292,141  $  290,432  $  279,624
    Goodwill and other intangibles          (59,559)    (59,742)    (61,578)
    Accumulated other comprehensive income    8,012       4,106       3,334
    Qualifying trust preferred stock         28,000      28,000      28,000
    Excess deferred tax assets               (1,071)          -           -
  Total tier I capital                   $  267,523  $  262,796  $  249,380

  Total Risk-Based Capital:
    Tier I capital                       $  267,523  $  262,796  $  249,380
    Qualifying allowance for loan losses     16,790      17,768      18,298
  Total risk-based capital               $  284,313  $  280,564  $  267,678

  Net risk-weighted assets               $1,735,538  $1,758,566  $1,734,653

  Ratios:
    Average stockholders' equity to
     average assets                          11.87%      11.47%      10.57%
    Tangible capital ratio                    9.52%       9.32%       8.91%
    Risk-based capital ratios:
      Tier I capital                         15.41%      14.94%      14.38%
      Total risk-based capital               16.38%      15.95%      15.43%
      Leverage capital                       10.97%      10.68%      10.83%



                                                March 31          Dec. 31
                                                  2005              2004
  Tier I Capital:
    Stockholders' equity                      $  219,302        $  216,080
    Goodwill and other intangibles                (6,204)           (6,255)
    Accumulated other comprehensive
     income                                        5,890             1,144
    Qualifying trust preferred stock              28,000            28,000
    Excess deferred tax assets                    (4,524)           (3,129)
  Total tier I capital                        $  242,464        $  235,840

  Total Risk-Based Capital:
    Tier I capital                            $  242,464        $  235,840
    Qualifying allowance for loan losses          16,325            17,815
  Total risk-based capital                    $  258,789        $  253,655

  Net risk-weighted assets                    $1,522,881        $1,524,581

  Ratios:
    Average stockholders' equity to
     average assets                               10.08%             9.81%
    Tangible capital ratio                         9.52%             9.51%
    Risk-based capital ratios:
      Tier I capital                              15.92%            15.47%
      Total risk-based capital                    16.99%            16.64%
      Leverage capital                            11.00%            10.74%

  (a) December 31, 2005 risk-based capital ratios are estimated.



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

                                       As of and for the Quarter Ended
                              Dec 31.  Sept. 30   June 30  March 31  Dec. 31
                               2005      2005       2005     2005      2004

  Intangibles, net           $59,559    $59,742   $61,578    $6,204   $6,255
  Intangibles amortization
   expense                       183        183        95        51       51



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

                                                    Quarter Ended
                                            Dec. 31    Sept. 30    June 30
                                              2005        2005       2005

  Balance at beginning of period         $   17,768  $   18,298  $   16,325

  Allowance acquired through acquisition          -           -       3,265

  Charge-offs:
    Residential real estate                     188          74          97
    Home equity                                 114         134         226
    Commercial real estate                      505          52         653
    Other commercial                             22           2          10
    Installment                                 664         476         263
    Overdraft deposit accounts                  996       1,012         832
      Total charge-offs                       2,489       1,750       2,081

  Recoveries:
    Residential real estate                     183          46          16
    Home equity                                   5           7           9
    Commercial real estate                       13          24         311
    Other commercial                             17         111          34
    Installment                                 163         136         175
    Overdraft deposit accounts                  330         296         244
      Total recoveries                          711         620         789

      Net charge-offs                         1,778       1,130       1,292
  Provision for loan losses                     800         600           -
  Balance at end of period               $   16,790  $   17,768  $   18,298

  Loans outstanding                      $1,612,827  $1,622,710  $1,600,985
  Average loans outstanding               1,618,711   1,612,344   1,473,880
  Allowance as a percent of loans
   outstanding                                1.04%       1.09%       1.14%
  Allowance as a percent of
   non-performing loans                        402%        487%        464%
  Net charge-offs (annualized) as a
   percent of average loans outstanding       0.44%       0.28%       0.35%



                                                      Quarter Ended
                                                March 31          Dec. 31
                                                   2005              2004

  Balance at beginning of period              $   17,815        $   18,537

  Allowance acquired through
   acquisition                                         -                 -

  Charge-offs:
    Residential real estate                          237               166
    Home equity                                      421                 5
    Commercial real estate                           393               105
    Other commercial                                  36                14
    Installment                                      308               458
    Overdraft deposit accounts                       744               586
      Total charge-offs                            2,139             1,334

  Recoveries:
    Residential real estate                           37               137
    Home equity                                        -                 -
    Commercial real estate                            50                10
    Other commercial                                  45                80
    Installment                                      205               147
    Overdraft deposit accounts                       312               238
      Total recoveries                               649               612

      Net charge-offs                              1,490               722
  Provision for loan losses                            -                 -
  Balance at end of period                    $   16,325        $   17,815

  Loans outstanding                           $1,343,247        $1,354,774
  Average loans outstanding                    1,348,489         1,347,297
  Allowance as a percent of loans
   outstanding                                     1.22%             1.31%
  Allowance as a percent of
   non-performing loans                             490%              487%
  Net charge-offs (annualized) as a
   percent of average loans outstanding            0.44%             0.21%



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

                                   Dec. 31 Sept. 30 June 30 March 31 Dec. 31
                                      2005    2005    2005    2005    2004

  Nonaccrual loans                   $2,785  $2,468  $2,709  $2,641  $2,147
  Accruing loans past due 90 days or
   more                               1,124   1,003     936     322     677
  Previously securitized loans past
   due 90 days or more                  268     174     299     372     832
      Total non-performing loans      4,177   3,645   3,944   3,335   3,656
  Other real estate owned               135     117     471     463     247
      Total non-performing assets    $4,312  $3,762  $4,415  $3,798  $3,903

  Non-performing assets as a percent
   of loans and other real estate
   owned                               0.27%   0.23%   0.28%   0.28%   0.29%


First Call Analyst: 

FCMN Contact: 

DATASOURCE: City Holding Company



CONTACT:  Charles R. Hageboeck, Chief Executive Officer and President of

City Holding Company, [phone]



Web site:  http://www.cityholding.com/ 

Copyright