City Holding Company · NASDAQ:CHCO
City — RBC Capital Markets Financial Institutions Conference 2003
28 slides from City's conference presentation, Sep 19, 2003
Slide 1: RBC Capital Markets Financial Institutions Conference
RBC Capital Markets Financial Institutions Conference September 19, 2003
Slide 2: Forward-looking statements
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 pro
Slide 3: $2.0 Billion Commercial Bank
$2.0 Billion Commercial Bank headquartered in Charleston WV 55 Banking Offices 150,000 households; 275,000 accounts 16,636,000 common shares outstanding $580 million market capitalization * *As of 9/11/03
Slide 4: Prior History
Net loss of $54.4 million or $3.81 per share for 2000 & 2001 Formal Agreements with OCC and Federal Reserve $130 million in “problem loans” Stock trading at $5.125 per share from a high of $45 per share Discontinued common share cash dividends and deferred trust preferred dividends Prior History
Slide 5: Turnaround
2002 Net income $32.5 million or $1.90 per share with ROA of 1.59% and ROE of 20.54% Terminated Formal Agreements with OCC and Federal Reserve Fully restored common dividends to their historic high and resumed Trust Preferred dividends 2003 (1 st half) Net income $21.5 million or $1.27 per share wit
Slide 6: High Performance
7 th best performing, publicly traded stock of 2002 by the Bloomberg 100 annual index 1 st of all USA banks and 4 th best of all US publicly traded companies over the prior two years with appreciation of 391% 37% improvement in share value since last year’s RBC conference *The “Bloomberg 100” lists
Slide 7: CHCO's Value Proposition
Proven management team focused on delivering shareholder value Low risk/High returns Highly visible near-term opportunities CHCO’s Value Proposition
Slide 8: CHCO's Business Model
We are a retail bank We focus on core deposit gathering CHCO’s Business Model
Slide 9: West Virginia headquarters image
West Virginia 25313 ‘wiw.cityholding com
Slide 10: Key Markets
Key Markets 12% Market Share in WV’s 2 nd largest market 8% Market Share in DC suburbs WV’s fastest growing market 30% Market Share 11% Market Share in WV’s largest market
Slide 11: City National Bank Customer Profile
City National Bank Customer Profile Source: Internal data as of June 30, 2003
Slide 12: High Quality and Stable Funding Source
High Quality and Stable Funding Source As of June 30, 2003 *$1-3 billion peer group as compiled by the FFIEC in their Uniform Bank Performance Reports Peer Group* City Holding Company
Slide 13: Conservative Loan Portfolio Mix
Conservative Loan Portfolio Mix City Holding Company Peer Group* Loan to Core Deposits 78.7% Loan to Core Deposits 99.9% As of June 30, 2003 *$1-3 billion peer group as compiled by the FFIEC in their Uniform Bank Performance Reports
Slide 14: Real Estate Based Lending Focus
Real Estate Based Lending Focus As of June 30, 2003 Other Loans 15.5% Real Estate Secured Loans 84.5%
Slide 15: Strong Liquidity
The Investment Portfolio represents 28% of the bank’s total assets and are predominately unpledged The Company is unleveraged: Only $15MM in FHLB advances CD’s and Repo’s fund 9% of assets, half of which are in accounts less than $250M Strong Liquidity
Slide 16: Limited Interest Rate Risk
Immediate Basis Estimated Increase or Point Change in Decrease in Net Interest Rates Income over 1 year +300 Bp +12% +100 Bp + 6% - 50 Bp - 2% As of 6/30/03 Limited Interest Rate Risk
Slide 17: Favorable Revenue Profile
Favorable Revenue Profile As of June 30, 2003 *$1-3 billion peer group as compiled by the FFIEC in their Uniform Bank Performance Reports
Slide 18: Strong Loan Quality
Strong Loan Quality *$1-3 billion peer group as compiled by the FFIEC in their Uniform Bank Performance Reports 3/31/03
Slide 19: Strong Loan Loss Reserve
Strong Loan Loss Reserve *$1-3 billion peer group as compiled by the FFIEC in their Uniform Bank Performance Reports 3/31/03 2.18% 1.45%
Slide 20: Net Charge-Offs/Opportunity?
Net Charge-Offs/Opportunity? The Company recorded a negative provision of $3.3 million in Q2 2003
Slide 21: Performance Measures
Performance Measures 2003 is 6/30/03 YTD annualized. EPS (diluted) ROA ROE -16.8% 20.5% 25.2% -$1.54 $1.90 $2.54
Slide 22: Strong Core Performance
While City Holding Company has benefited from low and negative provision expense and from a high accrual rate on its retained interests, in the absence of these factors CHCO would still demonstrate: high and growing profitability strong and stable net interest margins high operational efficiency str
Slide 23: Adjusted Net Interest Margin
Adjusted Net Interest Margin Net interest margin adjusted by subtracting interest income on Retained Interests and adding interest expense on an equivalent amount of Trust Preferred Debt used to fund the assets.
Slide 24: Performance Objectives
Performance Objectives Maintain well-capitalized status Capital 1.50% ROA 20% ROE 10% Earnings Per Share Growth
Slide 25: Why Should You Own Our Stock?
Proven management team focused on delivering shareholder value Performance-based incentive plans Value-vested stock options Improved City’s shareholder value by 507% since January 2001 Why Should You Own Our Stock?
Slide 26: Why Should You Own Our Stock?
Low Risk/High Returns Fortress Balance Sheet Pristine Loan Quality High Liquidity Strongly Capitalized Retail Core Funded Not reliant on Mortgage Banking Revenues Why Should You Own Our Stock?
Slide 27: Why Should You Own Our Stock?
Highly visible near-term opportunities $57.5 million of 9.125% Trust Preferred callable on 10/31/2003 Potential low or negative loan loss provision in future periods Why Should You Own Our Stock?
Slide 28: Questions?
Questions?
City Holding — RBC Capital Markets Financial Institutions Conference 2003 on 6ix