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West Virginia's City Holding is content to have loan officers drive several hours to pursue lending opportunities rather than relying on aggressive M&A. Part of the approach is tied to lessons learned from a risky strategy that blew up on a previous management team in the 1990s.
February 13 -
Profits at Capital City Bank Group nearly doubled in the second quarter as the Tallahassee, Fla., company continued to shed problem assets.
July 22
City Holding in Charleston, W.Va.,
The $3.4 billion-asset company said in a press release Tuesday that its second-quarter net income fell 2% from a year earlier, to $12.8 million. Earnings of 80 cents a share were a penny less than the average of analysts polled by Bloomberg.
Net interest income fell 8%, to $28.9 million. The company attributed the decline to an "expected decrease in accretion" from its purchases of Virginia Savings in May 2012 and Community Bank in January 2013. Still, the net interest margin compressed 40 basis points, to 3.95%, offsetting a 2% increase in total loans, to $2.6 billion.
"We recognize that the economy remains stalled in a low-growth trajectory with many customers too uncertain about the future to buy homes or invest in growing their businesses," Charles Hageboeck, City Holding's chief executive, said in the release.
Asset quality improved. The company's loan-loss provision decreased by 84%, to $285,000. Net chargeoffs fell 43%, to $943,000.
Noninterest income rose 6%, to $15.1 million, though the company had $818,000 in securities gains.
Noninterest expenses held steady, at $24.3 million.