City Holding Co. of Charleston, W.Va., announced a fourth-quarter loss and substantial layoffs.
The $2.7 billion-asset bank holding company said last week that it lost $15 million, or 90 cents per share, during the fourth quarter, compared with a profit of $6.5 million, or 39 cents per share, during the same period of 1997.
For the year, City posted net income of $5.2 million, compared with $26 million in 1997.
City said it will lay off about 10% of its work force-about 100 employees-by April as part of a cost-cutting effort expected to save $13 million this year.
City Holding owns seven banks doing business in West Virginia, Ohio, and California.
Last year the company bought Horizon Bancorp, a $1 billion-asset company in Beckley, W.Va. That purchase led to a $13 million pretax charge against fourth-quarter earnings for professional fees and severance and to buy out Horizon's data-processing contract, City said.
It also took a $6.73 million pretax charge to increase its loan-loss reserve because of "deterioration" in Horizon's indirect lending program and of "certain asset quality issues" in one of City's markets.
City's stock rose 68.75 cents Monday, at $27.9375. At midday Tuesday it was trading at $27.8125.
