Aided by its first whole-bank acquisition in seven years, City Holding Company (CHCO) in Charleston, W.Va., reported a $10.9 million profit in the fourth quarter of 2012, up 13% from the same quarter a year earlier.
For the full year, the $3.4 billion-asset company said profits fell 4.3%, to $38.9 million, due primarily to expenses related to its acquisition of Virginia Savings Bancorp in Front Royal in May 2012.
The deal, City Holding's first in Virginia, helped boost total loans by 9% year over year, to nearly $2.2 billion, and helped increase deposits by 8.5%, to $2.4 billion. It also contributed to 9-basis-point jump in its net interest margin, to 3.99%, and improved its returns on assets and equity.
City Holding, the parent of City National Bank, said that fee income rose 17% in the quarter from the same period last year, due primarily to increased debit card volume and higher fees from trust and investment services.
Along with the Virginia Savings deal, City Holding completed a second acquisition in Virginia earlier this month for Community Financial in Staunton. That deal did not factor into its fourth-quarter results.
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