City Holding Co. announces 75 pct. earnings increase - Clarksburg, Morgantown: News, Sports, Weather

City Holding Co. announces 75 pct. earnings increase

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Two acquisitions in the past 12 months helped City Holding Company to its 75 percent in net earnings in the second quarter compared with last year, the company announced July 23.

Earnings in the quarter totaled $13 million, up from $7.4 million last year. First-half earnings were up about 17 percent, from $2.9 billion a year ago to $3.4 billion this year.

Earnings increased in the second quarter of 2013 primarily due to an increase in accretion of net interest income associated with the acquisitions of Virginia Savings Bank in the second quarter of 2012 and the acquisition of Community Financial Corp. in the first quarter of 2013, the company said in its quarterly earnings report. Earnings in the second quarter of 2012 also included one-time merger-related expenses of $4 million compared to negligible merger-related expenses in the second quarter of 2013.

The company ended the quarter with $3.4 billion in total assets, up from $2.9 billion a year ago.

"City has been very pleased with the results of our acquisitions of Virginia Savings Bank, headquartered in Front Royal, Virginia and Community Bank, headquartered in Staunton, Virginia. Both of these new markets for City are experiencing higher growth levels than many of City's core banking markets," City CEO Charles Hageboeck said in the earnings release.

"The staff in both of these markets has worked very hard to serve their customers while integrating their operations into City. We are very pleased with customer retention and account acquisition results to date. We are also pleased with the results of efforts to improve the asset quality at both institutions, with results to-date ahead of expectations both with respect to the amount of time it will take to resolve the problems and the ultimate values that will be received."

City Holding Co. is the parent company of City National Bank of West Virginia. City National operates 83 branches across West Virginia, Virginia, Kentucky and Ohio.