Exhibit

Charleston, West Virginia - City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $4.9 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $22.8 million and diluted earnings of $1.38 per share for the quarter ended June 30, 2019. For the second quarter of 2019, the Company achieved a return on assets of 1.84% and a return on tangible equity of 17.9%. The Company reported that net interest income increased $7.3 million (21.9%) from the quarter ended June 30, 2018, while net interest income exclusive of accretion from fair value adjustments from acquisitions increased $6.8 million (20.4%) from the quarter ended June 30, 2018.

Charles R. (“Skip”) Hageboeck, the President and Chief Executive Officer of City Holding Company, commented: “City was able to deliver impressive earnings again in the second quarter of 2019. Net income, diluted earnings per share and reported net interest income were all above both the second quarter of 2018 and the first quarter of 2019. Our net interest margin remained steady from the first quarter of 2019 at 3.65%. City’s balance sheet continues to demonstrate strong credit quality at a time when we see some competitors easing underwriting standards in order to make loans of marginal quality. City’s tangible capital of 10.7% grew 33 basis points during the second quarter of 2019, well above our ratio of 9.9% at June 30, 2018, even as we increased our dividend to shareholders over 15% and have repurchased in excess of 235,000 shares of our common stock in the last twelve months. After adjusting for unusual events, non-interest income in the second quarter was strong, and expenses remained well controlled. However, loan balances are down since December 31, 2018, particularly in the commercial loan portfolio. Nevertheless, embedded in that reality is what I think represents some good news. Originations of new loans during the first half of 2019 were very comparable to that of 2018; but loan payoffs in the first half of 2019 have been dramatically above payoff rates in prior years. The increase in commercial loan payoffs can be attributed to several loans that were paid off upon the sale of the underlying commercial real estate collateral. Some of these loans were refinanced by quasi-government entities which provide financing at rates below what most banks can compete with. The good news is that, loan balances within our core markets were very stable with most payoffs being commercial real estate originated in our Columbus or Charlotte markets. Additionally, several loans totaling about $29 million went to competitors when the customers made unacceptable demands for less stringent terms or structure, despite their own weak financial performance and City chose not to acquiesce to their demands and avoided loans that don’t meet our credit standards. As is typical, there are likely to be additional loan payoffs during the

remainder of 2019. However, we currently also have a robust pipeline of new loans which have been approved and scheduled to close in the next several months. While some of these new loans are being originated in Columbus and Charlotte, happily a significant number of these loans are being originated in our core markets, and that is good news. Shareholders might appropriately worry that our core markets aren’t adequately robust, however, our commercial loan pipeline suggests that these core markets in fact remain stable. Looking to the future, we anticipate that commercial loan balances will grow in the third quarter, but by December 31, 2019 may or may not exceed commercial balances on the books as of December 31, 2018.”

The Company’s net interest income increased from $40.1 million during the first quarter of 2019 to $40.9 million during the second quarter of 2019. During the second quarter of 2019, the Company’s tax equivalent net interest income increased $0.8 million, or 2.1%, from $40.3 million for the first quarter of 2019 to $41.1 million for the second quarter of 2019. Higher loan yields (10 basis points) increased net interest income by $1.3 million but were partially offset by an increase in rates paid on deposits ($0.6 million). The Company’s reported net interest margin remained steady at 3.65% for the second quarter of 2019 compared to 3.66% for the first quarter of 2019. The reported net interest margin during the first quarter is often positively impacted by the shorter number of days in February which increased City’s net interest margin by 2 basis points in the first quarter of 2019. Excluding the favorable impact of the accretion from fair value adjustments, the net interest margin would have been 3.57% for the quarter ended June 30, 2019 and 3.61% for the quarter ended March 31, 2019.

The Company’s ratio of nonperforming assets to total loans and other real estate owned improved from 0.43% at March 31, 2019 to 0.41% at June 30, 2019. Total nonperforming assets decreased from $15.4 million at March 31, 2019 to $14.5 million at June 30, 2019. Excluded from this ratio are purchased credit-impaired loans for which the Company estimated cash flows and estimated a credit mark. Such loans would be considered nonperforming loans if the loan’s performance deteriorates below the Company’s initial expectations. Total past due loans decreased from $11.0 million, or 0.31% of total loans outstanding, at March 31, 2019 to $9.5 million, or 0.27% of total loans outstanding, at June 30, 2019.

As a result of the Company’s quarterly analysis of the adequacy of the allowance for loan losses (“ALLL”), the Company recorded a recovery of loan loss provision of $0.6 million in the second quarter of 2019, compared to a recovery of loan loss provision of $2.1 million for the comparable period in 2018 and a recovery of loan loss provision of $0.8 million for the first quarter of 2019. During the periods encompassed in the Company’s historical loss review, charge offs have continued to decline and the Company has recovered significant amounts on loans previously charged off, including a $0.5 million recovery in the second quarter of 2019 from a loan that had previously been charged off during 2014. As a result, the Company’s historical loss rate that is used to compute the allowance not specifically allocated to individual credits has continued to improve and reduced the Company’s ALLL, which resulted in a recovery of loan loss provision in the second quarter of 2019. Changes in the amount of the provision and related allowance are based on the Company’s detailed systematic methodology and are directionally consistent with changes in the composition and quality of the Company’s loan portfolio. 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 and allowance for loan losses that is directionally consistent with changes in asset quality and loss experience.

Non-interest income was $17.8 million for the second quarter of 2019 as compared to $15.6 million for the second quarter of 2018. During the second quarter of 2019, the Company reported $0.1 million of unrealized fair value gains on the Company’s equity securities compared to $0.5 million of unrealized fair value gains on the Company’s equity securities in the second quarter of 2018. Exclusive of these gains, non-interest income increased from $15.1 million for the second quarter of 2018 to $17.7 million for the second quarter of 2019. This increase was largely attributable to an increase of $1.0 million, or 21.8%, in bankcard revenues and an increase of $0.5 million, or 6.2%, in service charges, with $0.5 million and $0.4 million, respectively, attributable to the late 2018 acquisitions of Poage Bankshares, Inc. (“Poage”) and Farmers Deposit Bancorp, Inc. (“Farmers Deposit”). In addition, other income increased $0.7 million and bank owned life insurance revenues increased $0.4 million due to death benefit proceeds received in the second quarter of 2019. Other income increased due to the completion of the sale of our Virginia Beach, VA branch to Select Bancorp, Inc. on June 28, 2019. As a result of this transaction, the Company recognized a gain of $0.7 million and deposit balances outstanding fell by $25.7 million.

During the quarter ended June 30, 2019, the Company incurred an additional $0.5 million of acquisition and integration expenses associated with the acquisitions of Poage and Farmers Deposit. Excluding this expense, non-interest expenses increased $5.3 million (21.3% increase), from $24.9 million in the second quarter of 2018 to $30.2 million in the second quarter of 2019. This increase was primarily due to an increase in salaries and employee benefits of $2.2 million due primarily to the acquisitions of Poage and Farmers Deposit ($1.1 million), annual salary adjustments ($0.6 million), and a nonrecurring health insurance expense ($0.4 million). Other expenses increased $1.4 million due largely to the acquisitions of Poage and Farmers Deposit and a partial write-down of one of the Company’s branches during the second quarter of 2019 ($0.2 million). A portion of the branch’s excess space was donated to a local community charity organization. The Company expects to recover this write-down in approximately 3 years via lower operating costs. Primarily as a result of the acquisitions of Poage and Farmers Deposit, bankcard expenses increased $0.5 million, equipment and software related expenses increased $0.3 million and occupancy related expenses increased $0.3 million from the second quarter of 2018 to the second quarter of 2019.

As a result of the sale of the Company’s Virginia Beach branch on June 28, 2019, total deposits fell by $25.7 million. Despite the branch sale, total average depository balances increased $68.1 million, or 1.7%, from the quarter ended March 31, 2019 to the quarter ended June 30, 2019 - reflecting the growth of our large customer base and their depository balances. Average savings deposit balances increased $32.8 million, average noninterest-bearing demand deposit balances increased $32.6 million, and average time deposit balances increased $15.6 million. These increases were partially offset by a decrease in interest-bearing demand deposit balances of $12.8 million.

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. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, especially in the communities and markets in which we conduct our business; (2) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for loan losses may not be sufficient to absorb actual losses in our loan portfolio, and risk from concentrations in our loan portfolio; (3) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (4) changes in the interest rate environment; (5) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (6) changes in technology and increased competition, including competition from non-bank financial institutions; (7) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (8) difficulty growing loan and deposit balances; (9) our ability to effectively execute our business plan, including with respect to future acquisitions; (10) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries; (11) deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions; (12) regulatory enforcement actions and adverse legal actions; (13)

difficulty attracting and retaining key employees; (14) the expected cost savings and any revenue synergies from the merger of City Holding Company, City National Bank of West Virginia, Poage Bankshares, Inc., Town Square Bank, Farmers Deposit Bancorp, Inc. and Farmers Deposit Bank may not be fully realized within the expected time frames; (15) the disruption from the merger of City Holding Company, City National Bank of West Virginia, Poage Bankshares, Inc., Town Square Bank, Farmers Deposit Bancorp, Inc. and Farmers Deposit Bank may make it more difficult to maintain relationships with clients, associates, or suppliers; and (16) other economic, competitive, technological, operational, governmental, regulatory, and market factors affecting our operations. 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. Further, the Company is required to evaluate subsequent events through the filing of its June 30, 2019 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary June 30, 2019 results and will adjust the amounts if necessary.



	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2019			2019			2018			2018			2018			2019			2018

Earnings
Net Interest Income (FTE)	$	41,113		$	40,274		$	36,625		$	35,745		$	33,760		$	81,387		$	66,594
Net Income available to common shareholders	22,751			21,619			10,713			20,692			20,979			44,370			38,590

Per Share Data
Earnings per share available to common shareholders:
Basic	$	1.38		$	1.31		$	0.68		$	1.34		$	1.36		$	2.68		$	2.49
Diluted	1.38			1.30			0.68			1.33			1.35			2.68			2.48
Weighted average number of shares:
Basic	16,368			16,411			15,603			15,340			15,326			16,390			15,370
Diluted	16,386			16,429			15,618			15,358			15,345			16,408			15,390
Period-end number of shares	16,397			16,484			16,555			15,449			15,452			16,397			15,452
Cash dividends declared	$	0.53		$	0.53		$	0.53		$	0.53		$	0.46		$	1.06		$	0.92
Book value per share (period-end)	38.84			37.57			36.29			33.14			32.60			38.84			32.60
Tangible book value per share (period-end)	31.44			30.18			28.87			28.08			27.53			31.44			27.53
Market data:
High closing price	$	82.56		$	80.21		$	77.94		$	82.79		$	78.44		$	82.56		$	78.44
Low closing price	73.05			67.58			66.36			75.54			67.95			67.58			65.03
Period-end closing price	76.26			76.19			67.59			76.8			75.23			76.26			75.23
Average daily volume	53			54			66			54			60			53			58
Treasury share activity:
Treasury shares repurchased	107			55			69			7			10			162			214
Average treasury share repurchase price	$	74.81		$	74.69		$	72.89		$	77.18		$	69.26		$	74.77		$	68.54

Key Ratios (percent)
Return on average assets	1.84		%	1.76		%	0.96		%	1.90		%	2.00		%	1.80		%	1.85		%
Return on average tangible equity	17.9		%	17.7		%	9.6		%	18.9		%	19.9		%	17.8		%	18.3		%
Yield on interest earning assets	4.48		%	4.46		%	4.32		%	4.25		%	4.15		%	4.47		%	4.10		%
Cost of interest bearing liabilities	1.09		%	1.04		%	1.00		%	0.92		%	0.76		%	1.07		%	0.73		%
Net Interest Margin	3.65		%	3.66		%	3.55		%	3.54		%	3.52		%	3.66		%	3.54		%
Non-interest income as a percent of total revenue	30.3		%	28.3		%	28.8		%	30.7		%	31.7		%	29.4		%	31.3		%
Efficiency Ratio	50.5		%	51.2		%	47.6		%	48.3		%	50.7		%	51.0		%	51.5		%
Price/Earnings Ratio (a)	13.84			14.58			24.82			14.37			13.88			14.21			15.13




Capital (period-end)
Average Shareholders' Equity to Average Assets	12.76		%	12.49		%	12.05		%	11.81		%	11.88		%
Tangible equity to tangible assets	10.70		%	10.37		%	10.01		%	9.99		%	9.90		%
Consolidated City Holding Company risk based capital ratios (b):
CET I	15.91		%	15.55		%	15.07		%	15.94		%	15.49		%
Tier I	16.03		%	15.67		%	15.20		%	16.49		%	16.05		%
Total	16.47		%	16.13		%	15.69		%	17.08		%	16.65		%
Leverage	10.70		%	10.62		%	11.36		%	11.01		%	11.13		%
City National Bank risk based capital ratios (b):
CET I	14.19		%	13.89		%	13.05		%	14.00		%	13.26		%
Tier I	14.19		%	13.89		%	13.05		%	14.00		%	13.26		%
Total	14.63		%	14.36		%	13.55		%	14.59		%	13.87		%
Leverage	9.51		%	9.45		%	9.81		%	9.39		%	9.24		%

Other
Branches	95			97			100			87			86
FTE	935			927			939			846			849

Assets per FTE	$	5,284		$	5,305		$	5,498		$	5,226		$	5,152
Deposits per FTE	4,312			4,361			4,462			4,070			4,030

(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) June 30, 2019 risk-based capital ratios are estimated.



	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2019			2019			2018			2018			2018			2019			2018
Interest Income
Interest and fees on loans	$	43,174		$	42,279		$	37,973		$	36,872		$	34,292		$	85,453		$	67,210
Interest on investment securities:
Taxable	5,732			5,689			5,023			4,216			4,117			11,421			8,098
Tax-exempt	755			779			729			701			710			1,534			1,413
Interest on deposits in depository institutions	577			186			623			940			61			763			103
Total Interest Income	50,238			48,933			44,348			42,729			39,180			99,171			76,824

Interest Expense
Interest on deposits	8,417			7,767			6,656			5,497			4,918			16,184			9,244
Interest on short-term borrowings	863			1,052			1,061			1,435			459			1,915			919
Interest on long-term debt	47			48			200			239			230			95			441
Total Interest Expense	9,327			8,867			7,917			7,171			5,607			18,194			10,604
Net Interest Income	40,911			40,066			36,431			35,558			33,573			80,977			66,220
(Recovery of) provision for loan losses	(600		)	(849		)	(400		)	(27		)	(2,064		)	(1,449		)	(1,882		)
Net Interest Income After (Recovery of) Provision for Loan Losses	41,511			40,915			36,831			35,585			35,637			82,426			68,102

Non-Interest Income
Net gains on sale of investment securities	21			88			—			—			—			109			—
Unrealized gains (losses) recognized on securities still held	113			75			(1,246		)	384			492			188			772
Service charges	7,778			7,321			7,921			7,598			7,323			15,099			14,185
Bankcard revenue	5,522			4,969			4,826			4,677			4,532			10,491			8,866
Trust and investment management fee income	1,699			1,642			1,737			1,579			1,645			3,341			3,214
Bank owned life insurance	1,132			1,016			734			813			722			2,148			1,543
Other income	1,560			814			734			702			897			2,374			1,525
Total Non-Interest Income	17,825			15,925			14,706			15,753			15,611			33,750			30,105

Non-Interest Expense
Salaries and employee benefits	15,767			15,243			14,017			13,576			13,551			31,010			26,882
Occupancy related expense	2,598			2,732			2,250			2,323			2,346			5,330			4,750
Equipment and software related expense	2,223			2,191			2,038			1,965			1,895			4,414			3,727
FDIC insurance expense	347			291			308			315			313			638			627
Advertising	920			869			530			808			849			1,789			1,636
Bankcard expenses	1,534			1,182			1,229			1,134			1,064			2,716			2,139



Postage, delivery, and statement mailings	545		624		527		537		515		1,169		1,093
Office supplies	399		386		313		364		329		785		643
Legal and professional fees	605		521		469		453		475		1,126		925
Telecommunications	597		726		401		408		441		1,323		941
Repossessed asset losses, net of expenses	253		216		207		156		112		469		482
Merger related expenses	547		250		13,015		242		—		797		—
Other expenses	4,437		4,180		2,874		2,759		3,021		8,617		6,009
Total Non-Interest Expense	30,772		29,411		38,178		25,040		24,911		60,183		49,854
Income Before Income Taxes	28,564		27,429		13,359		26,298		26,337		55,993		48,353
Income tax expense	5,813		5,810		2,646		5,606		5,358		11,623		9,763
Net Income Available to Common Shareholders	$	22,751	$	21,619	$	10,713	$	20,692	$	20,979	$	44,370	$	38,590

Distributed earnings allocated to common shareholders	$	8,615	$	8,661	$	8,695	$	8,109	$	7,039	$	17,231	$	14,077
Undistributed earnings allocated to common shareholders	13,939		12,772		1,928		12,382		13,729		26,757		24,136
Net earnings allocated to common shareholders	$	22,554	$	21,433	$	10,623	$	20,491	$	20,768	$	43,988	$	38,213


Average common shares outstanding	16,368		16,411		15,603		15,340		15,326		16,390		15,370
Shares for diluted earnings per share	16,386		16,429		15,618		15,358		15,345		16,408		15,390

Basic earnings per common share	$	1.38	$	1.31	$	0.68	$	1.34	$	1.36	$	2.68	$	2.49
Diluted earnings per common share	$	1.38	$	1.30	$	0.68	$	1.33	$	1.35	$	2.68	$	2.48



	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
	2019			2019			2018			2018			2018
Assets
Cash and due from banks	$	53,373		$	50,522		$	55,016		$	49,806		$	43,466
Interest-bearing deposits in depository institutions	115,346			93,328			67,975			256,104			222,058
Cash and cash equivalents	168,719			143,850			122,991			305,910			265,524

Investment securities available-for-sale, at fair value	797,734			755,081			723,254			563,003			552,603
Investment securities held-to-maturity, at amortized cost	53,362			55,326			60,827			57,812			60,030
Other securities	26,517			26,182			28,810			28,875			28,920
Total investment securities	877,613			836,589			812,891			649,690			641,553

Gross loans	3,519,367			3,559,322			3,587,608			3,146,697			3,155,468
Allowance for loan losses	(13,795		)	(14,646		)	(15,966		)	(16,311		)	(16,876		)
Net loans	3,505,572			3,544,676			3,571,642			3,130,386			3,138,592

Bank owned life insurance	113,855			114,256			113,544			105,372			104,773
Premises and equipment, net	78,263			78,747			78,383			72,484			72,482
Accrued interest receivable	12,719			13,657			12,424			11,449			9,348
Net deferred tax assets	8,835			12,734			17,338			15,653			14,528
Intangible assets	121,322			121,790			122,848			78,215			78,342
Other assets	53,569			51,309			46,951			51,643			49,241
Total Assets	$	4,940,467		$	4,917,608		$	4,899,012		$	4,420,802		$	4,374,383

Liabilities
Deposits:
Noninterest-bearing	$	798,056		$	793,633		$	789,119		$	672,042		$	684,614
Interest-bearing:
Demand deposits	891,742			879,279			899,568			802,490			785,933
Savings deposits	974,847			988,182			934,218			821,390			817,547
Time deposits	1,366,991			1,381,913			1,352,654			1,147,709			1,133,684
Total deposits	4,031,636			4,043,007			3,975,559			3,443,631			3,421,778
Short-term borrowings
Federal Funds purchased	—			—			40,000			170,000			181,375
Customer repurchase agreements	207,033			194,683			221,911			220,124			196,635
Long-term debt	4,054			4,053			4,053			16,495			16,495
Other liabilities	60,836			56,624			56,725			58,526			54,346
Total Liabilities	4,303,559			4,298,367			4,298,248			3,908,776			3,870,629



Stockholders' Equity
Preferred stock	—			—			—			—			—
Common stock	47,619			47,619			47,619			47,619			47,619
Capital surplus	169,374			170,215			169,555			140,450			140,091
Retained earnings	512,911			498,847			485,967			484,017			471,515
Cost of common stock in treasury	(98,084		)	(91,589		)	(87,895		)	(136,783		)	(136,520		)
Accumulated other comprehensive loss:
Unrealized gain (loss) on securities available-for-sale	10,959			20			(8,611		)	(18,244		)	(13,918		)
Underfunded pension liability	(5,871		)	(5,871		)	(5,871		)	(5,033		)	(5,033		)
Total Accumulated Other Comprehensive Loss	5,088			(5,851		)	(14,482		)	(23,277		)	(18,951		)
Total Stockholders' Equity	636,908			619,241			600,764			512,026			503,754
Total Liabilities and Stockholders' Equity	$	4,940,467		$	4,917,608		$	4,899,012		$	4,420,802		$	4,374,383

Regulatory Capital
Total CET 1 capital	$	511,344		$	504,148		$	492,526		$	457,580		$	444,869
Total tier 1 capital	515,344			508,148			496,526			473,580			460,869
Total risk-based capital	529,230			523,053			512,801			490,307			478,255
Total risk-weighted assets	3,214,153			3,241,989			3,267,357			2,871,241			2,871,561



	June 30,		March 31,		December 31,		September 30,		June 30,
	2019		2019		2018		2018		2018

Residential real estate ⁽¹⁾	$	1,644,494	$	1,625,647	$	1,635,338	$	1,485,823	$	1,472,916
Home equity - junior liens	150,676		152,251		153,496		143,540		139,245
Commercial and industrial	288,803		289,327		286,314		213,815		213,687
Commercial real estate ⁽²⁾	1,378,116		1,436,190		1,454,942		1,268,052		1,294,489
Consumer	53,356		52,483		51,190		31,869		31,137
DDA overdrafts	3,922		3,424		6,328		3,598		3,994
Gross Loans	$	3,519,367	$	3,559,322	$	3,587,608	$	3,146,697	$	3,155,468

Construction loans included in:
(1) - Residential real estate loans	$	23,673	$	22,635	$	21,834	$	17,628	$	21,662
(2) - Commercial real estate loans	43,432		56,282		37,869		24,110		28,567



	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2019			2019			2018			2018			2018			2019			2018
Allowance for Loan Losses
Balance at beginning of period	$	14,646		$	15,966		$	16,311		$	16,876		$	18,381		$	15,966		$	18,836

Charge-offs:
Commercial and industrial	(51		)	—			(9		)	—			(385		)	(51		)	(724		)
Commercial real estate	(133		)	(45		)	(20		)	(74		)	(118		)	(178		)	(275		)
Residential real estate	(303		)	(328		)	(218		)	(244		)	(96		)	(631		)	(220		)
Home equity	(71		)	(46		)	—			(108		)	(33		)	(117		)	(111		)
Consumer	(111		)	(185		)	(209		)	(206		)	(255		)	(296		)	(354		)
DDA overdrafts	(588		)	(625		)	(725		)	(704		)	(636		)	(1,213		)	(1,272		)
Total charge-offs	(1,257		)	(1,229		)	(1,181		)	(1,336		)	(1,523		)	(2,486		)	(2,956		)

Recoveries:
Commercial and industrial	5			135			528			147			1,476			140			1,478
Commercial real estate	575			32			194			166			149			607			372
Residential real estate	50			75			92			116			53			125			159
Home equity	—			—			—			—			—			—			—
Consumer	46			97			36			25			59			143			105
DDA overdrafts	330			419			386			344			345			749			764
Total recoveries	1,006			758			1,236			798			2,082			1,764			2,878

Net (charge-offs)/recoveries	(251		)	(471		)	55			(538		)	559			(722		)	(78		)
(Recovery of) provision for loan losses	(600		)	(849		)	(400		)	(27		)	(2,064		)	(1,449		)	(1,882		)
Balance at end of period	$	13,795		$	14,646		$	15,966		$	16,311		$	16,876		$	13,795		$	16,876

Loans outstanding	$	3,519,367		$	3,559,322		$	3,587,608		$	3,146,697		$	3,155,468
Allowance as a percent of loans outstanding	0.39		%	0.41		%	0.45		%	0.52		%	0.53		%
Allowance as a percent of non-performing loans	115.3		%	119.9		%	107.8		%	142.1		%	127.6		%

Average loans outstanding	$	3,539,077		$	3,576,984		$	3,252,939		$	3,149,320		$	3,138,146		$	3,557,927		$	3,135,987
Net (recoveries) charge-offs (annualized) as a percent of average loans outstanding	0.03		%	0.05		%	(0.01		)%	0.07		%	(0.07		)%	0.04		%	—		%



	June 30,			March 31,			December 31,			September 30,			June 30,
	2019			2019			2018			2018			2018
Nonaccrual Loans
Residential real estate	$	2,354		$	3,263		$	4,275		$	3,029		$	3,783
Home equity	161			41			138			—			168
Commercial and industrial	2,149			1,526			1,676			818			863
Commercial real estate	7,204			7,282			8,461			7,599			7,707
Consumer	—			1			1			1			557
Total nonaccrual loans	11,868			12,113			14,551			11,447			13,078
Accruing loans past due 90 days or more	94			106			257			35			145
Total non-performing loans	11,962			12,219			14,808			11,482			13,223
Other real estate owned	2,581			3,186			4,608			4,259			3,636
Total non-performing assets	$	14,543		$	15,405		$	19,416		$	15,741		$	16,859

Non-performing assets as a percent of loans and other real estate owned	0.41		%	0.43		%	0.54		%	0.50		%	0.53		%

Past Due Loans
Residential real estate	$	7,302		$	7,972		$	9,991		$	4,657		$	5,998
Home equity	322			720			1,275			468			583
Commercial and industrial	166			101			497			187			624
Commercial real estate	1,026			1,414			585			934			402
Consumer	172			264			295			39			34
DDA overdrafts	487			535			488			582			525
Total past due loans	$	9,475		$	11,006		$	13,131		$	6,867		$	8,166

Total past due loans as a percent of loans outstanding	0.27		%	0.31		%	0.37		%	0.22		%	0.26		%

Troubled Debt Restructurings ("TDRs") (period-end)
Accruing:
Residential real estate	$	22,373		$	23,481		$	23,521		$	20,589		$	20,731
Home equity	3,062			3,018			3,030			2,941			3,196
Commercial and industrial	83			89			98			108			119
Commercial real estate	8,044			8,164			8,205			8,231			8,279
Consumer	—			—			—			—			—
Total accruing TDRs	$	33,562		$	34,752		$	34,854		$	31,869		$	32,325



	Three Months Ended
	June 30, 2019							March 31, 2019							June 30, 2018
	Average					Yield/		Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio ⁽¹⁾:
Residential real estate ⁽²⁾	$	1,783,718		$	20,454	4.60	%	$	1,806,233		$	20,451	4.59	%	$	1,602,103		$	16,951	4.24	%
Commercial, financial, and agriculture ⁽²⁾	1,698,186			21,658		5.12	%	1,715,524			20,845		4.93	%	1,501,618			16,578		4.43	%
Installment loans to individuals ^{(2), (3)}	57,173			889		6.24	%	55,227			840		6.17	%	34,425			516		6.01	%
Previously securitized loans ⁽⁴⁾	***			174		***		***			144		***		***			246		***
Total loans	3,539,077			43,175		4.89	%	3,576,984			42,280		4.79	%	3,138,146			34,291		4.38	%
Securities:
Taxable	749,346			5,732		3.07	%	714,413			5,689		3.23	%	541,990			4,117		3.05	%
Tax-exempt ⁽⁵⁾	100,348			956		3.82	%	102,375			986		3.91	%	91,135			898		3.95	%
Total securities	849,694			6,688		3.16	%	816,788			6,675		3.31	%	633,125			5,015		3.18	%
Deposits in depository institutions	124,732			577		1.86	%	72,723			186		1.04	%	29,164			61		0.84	%
Total interest-earning assets	4,513,503			50,440		4.48	%	4,466,495			49,141		4.46	%	3,800,435			39,367		4.15	%
Cash and due from banks	52,922							52,561							92,426
Premises and equipment, net	79,116							78,220							72,889
Goodwill and intangible assets	121,628							122,605							78,420
Other assets	189,618							195,954							177,299
Less: Allowance for loan losses	(15,057		)					(16,182		)					(18,215		)
Total assets	$	4,941,730						$	4,899,653						$	4,203,254

Liabilities:
Interest-bearing demand deposits	$	874,039		$	909	0.42	%	$	886,833		$	933	0.43	%	$	787,554		$	445	0.23	%
Savings deposits	980,089			1,236		0.51	%	947,337			1,066		0.46	%	817,187			453		0.22	%
Time deposits ⁽²⁾	1,384,017			6,272		1.82	%	1,368,465			5,768		1.71	%	1,123,261			4,020		1.44	%
Short-term borrowings	199,648			863		1.73	%	237,616			1,052		1.80	%	208,939			459		0.88	%
Long-term debt	4,053			47		4.65	%	4,053			48		4.80	%	16,495			230		5.59	%
Total interest-bearing liabilities	3,441,846			9,327		1.09	%	3,444,304			8,867		1.04	%	2,953,436			5,607		0.76	%
Noninterest-bearing demand deposits	820,689							788,109							704,546
Other liabilities	48,803							55,372							45,933
Stockholders' equity	630,392							611,868							499,339
Total liabilities and
stockholders' equity	$	4,941,730						$	4,899,653						$	4,203,254
Net interest income				$	41,113						$	40,274						$	33,760
Net yield on earning assets						3.65	%						3.66	%						3.56	%

(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of loan fees have been included in interest income:

Loan fees				$	481						$	134						$	102





(2) 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:
Residential real estate	$	83		$	32		$	130
Commercial, financial, and agriculture	668			190			238
Installment loans to individuals	(6		)	(6		)	4
Time deposits	196			256			—
	$	941		$	472		$	372

(3) Includes the Company’s consumer and DDA overdrafts loan categories.
(4) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.



	Six Months Ended June,
	June 30, 2019							June 30, 2018
	Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio ⁽¹⁾:
Residential real estate ⁽²⁾	$	1,791,263		$	40,904	4.60	%	$	1,601,554		$	33,431	4.21	%
Commercial, financial, and agriculture ⁽²⁾	1,710,281			42,503		5.01	%	1,500,698			32,186		4.33	%
Installment loans to individuals ^{(2), (3)}	56,383			1,728		6.18	%	33,735			1,020		6.10	%
Previously securitized loans ⁽⁴⁾	***			317		***		***			573		***
Total loans	3,557,927			85,452		4.84	%	3,135,987			67,210		4.32	%
Securities:
Taxable	731,976			11,420		3.15	%	539,366			8,098		3.03	%
Tax-exempt ⁽⁵⁾	101,356			1,942		3.86	%	91,427			1,789		3.95	%
Total securities	833,332			13,362		3.23	%	630,793			9,887		3.16	%
Deposits in depository institutions	98,871			767		1.56	%	29,405			102		0.70	%
Total interest-earning assets	4,490,130			99,581		4.47	%	3,796,186			77,199		4.10	%
Cash and due from banks	52,743							82,010
Premises and equipment, net	78,671							72,803
Goodwill and intangible assets	122,114							78,483
Other assets	192,768							172,265
Less: Allowance for loan losses	(15,617		)					(18,814		)
Total assets	$	4,920,809						$	4,182,933

Liabilities:
Interest-bearing demand deposits	$	880,401		$	1,842	0.42	%	$	785,041		$	802	0.21	%
Savings deposits	963,804			2,302		0.48	%	809,389			794		0.20	%
Time deposits ⁽²⁾	1,376,284			12,040		1.76	%	1,109,784			7,649		1.39	%
Short-term borrowings	218,527			1,915		1.77	%	222,696			919		0.83	%
Long-term debt	4,053			95		4.73	%	16,495			441		5.39	%
Total interest-bearing liabilities	3,443,069			18,194		1.07	%	2,943,405			10,605		0.73	%
Noninterest-bearing demand deposits	804,489							692,912
Other liabilities	52,070							46,178
Stockholders' equity	621,181							500,438
Total liabilities and
stockholders' equity	$	4,920,809						$	4,182,933
Net interest income				$	81,387						$	66,594
Net yield on earning assets						3.66	%						3.54	%

(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of loan fees have been included in interest income:

Loan fees				$	615						$	225




(2) 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:

Residential real estate	$	115		$	240
Commercial, financial, and agriculture	858			388
Installment loans to individuals	(12		)	14
Time deposits	452			—
	$	1,413		$	642

(3) Includes the Company’s consumer and DDA overdrafts loan categories.
(4) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.



	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2019			2019			2018			2018			2018			2019			2018
Net Interest Income/Margin
Net interest income ("GAAP")	$	40,911		$	40,066		$	36,431		$	35,558		$	33,573		$	80,977		$	66,220
Taxable equivalent adjustment	202			208			194			187			187			410			374
Net interest income, fully taxable equivalent	$	41,113		$	40,274		$	36,625		$	35,745		$	33,760		$	81,387		$	66,594

Average interest earning assets	$	4,513,503		$	4,466,495		$	4,089,984		$	4,005,067		$	3,800,435		$	4,490,130		$	3,796,186

Net Interest Margin	3.65		%	3.66		%	3.55		%	3.54		%	3.56		%	3.66		%	3.54		%
Accretion related to fair value adjustments	(0.08		)%	(0.05		)%	(0.05		)%	(0.03		)%	(0.04		)%	(0.06		)%	(0.03		)%
Net Interest Margin (excluding accretion)	3.57		%	3.61		%	3.50		%	3.51		%	3.52		%	3.59		%	3.50		%

Tangible Equity Ratio (period end)
Equity to assets ("GAAP")	12.89		%	12.59		%	12.26		%	11.58		%	11.52		%
Effect of goodwill and other intangibles, net	(2.19		)%	(2.22		)%	(2.26		)%	(1.59		)%	(1.61		)%
Tangible common equity to tangible assets	10.70		%	10.37		%	10.01		%	9.99		%	9.90		%

Return on tangible equity ("GAAP")	17.9		%	17.7		%	9.6		%	18.9		%	19.9		%	17.8		%	18.3		%
Impact of merger related expenses	0.3		%	0.1		%	9.2		%	0.3		%	—		%	0.2		%	—		%
Return on tangible equity, excluding merger related expenses	18.2		%	17.8		%	18.8		%	19.2		%	19.9		%	18.0		%	18.3		%

Return on assets ("GAAP")	1.84		%	1.76		%	0.96		%	1.90		%	2.00		%	1.80		%	1.85		%
Impact of merger related expenses	0.04		%	0.02		%	0.92		%	0.02		%	—		%	0.03		%	—		%
Return on Assets, excluding merger related expenses	1.88		%	1.78		%	1.88		%	1.92		%	2.00		%	1.83		%	1.85		%

Effective Income Tax Rate
Effective tax rate ("GAAP")	20.4		%	21.2		%	19.8		%	21.3		%	20.3		%	20.8		%	20.2		%
Impact of FIN 48 adjustments	—		%	—		%	2.97		%	—		%	—		%	—		%	—		%
Effective tax rate, excluding FIN 48 adjustments	20.4		%	21.2		%	22.8		%	21.3		%	20.3		%	20.8		%	20.2		%



Non-Accruing
Residential real estate	$	464	$	658	175		$	307	$	256
Home equity	5		5		—		40		40
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Consumer	—		—		—		—		—
Total non-accruing TDRs	$	469	$	663	$	175	$	347	$	296

Total TDRs	$	34,752	$	34,854	$	31,869	$	32,325	$	32,546