formfwp.htm
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Filed
pursuant to Rule 433
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Dated
November 13, 2008
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Registration
Statement
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No.
333-155344
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For
Immediate Release
November
13, 2008
For
Further Information Contact:
Charles
R. Hageboeck, President & CEO
(304)
769-1102
City
National Bank announces Filing of Shelf-Registration Statement and declines
Bail-out Funds
Community
bank opts not to apply for government bailout dollars
Charleston,
West Virginia – City Holding Company, (NASDAQ:CHCO), a $2.5 billion bank holding
company headquartered in Charleston, announced today that it will not apply for
participation in the Troubled Assets Relief Program (TARP) due to its strong
capital position. Approved by Congress on October 3, the $700 billion rescue
package is intended to support struggling financial institutions with a capital
infusion to help economic recovery.
Charles
Hageboeck, president and CEO, said, “In spite of the difficult financial times
facing the U.S. economy, City Holding Company and its subsidiary, City National
Bank, remain in a position of extraordinary financial strength.
City’s capital ratios are significantly above those of most other banks, with
tangible capital of 9.4% and total risk-based capital of 14.1%. City's balance
sheet is liquid, and loan quality has remained strong.”
“The
stated objective of TARP was to allow troubled banks to begin to actively lend
again. City has never stopped actively lending. We are in the fortunate position
of not needing a government bail-out to encourage us to lend to our customers.
City has, and will continue to be, focused on extending credit to businesses and
individuals alike within the markets in which we operate.”
“City
wholeheartedly supports the U.S. Treasury Department’s actions to provide strong
support to the financial markets which are experiencing considerable stress. It
is critical that the banking industry remains strong in order to facilitate
economic recovery. Luckily, City doesn’t need the support of the U.S. Treasury
at this time. City’s Board did carefully consider both the pro’s and con’s of
applying under the TARP, but declined to do so based upon the strength of our
capital, earnings, asset quality and liquidity.”
“Many of
the banks that have accepted the bail-out money have cited their desire to use
government money to finance acquisitions. City also wants to be well
positioned in case a smaller bank wants to join and grow with us. To that end,
we have filed a shelf registration with the SEC that will allow us (once the
registration statement is declared effective) to issue preferred or common
shares in City into the financial market should the opportunity to grow through
acquisition become available. Given that City’s stock, like its earnings,
remains strong, we believe that City could issue new shares directly into the
financial markets rather than depend upon selling these shares to the U.S.
Treasury department to finance an acquisition – should such an opportunity
become available in the future.”
Forward-Looking
Information
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. Such information involves risks and uncertainties that
could result in the Company's actual results differing from those projected in
the forward-looking statements. Important factors that could cause actual
results to differ materially from those discussed in such forward-looking
statements include, but are not limited to, (1) the Company may incur additional
loan loss provision due to negative credit quality trends in the future that may
lead to a deterioration of asset quality; (2) the Company may incur increased
charge-offs in the future; (3) the Company may experience increases in the
default rates on previously securitized loans that would result in impairment
losses or lower the yield on such loans; (4) the Company may continue to benefit
from strong recovery efforts on previously securitized loans resulting in
improved yields on these assets; (5) the Company could have adverse legal
actions of a material nature; (6) the Company may face competitive loss of
customers; (7) the Company may be unable to manage its expense levels; (8) the
Company may have difficulty retaining key employees; (9) changes in the interest
rate environment may have results on the Company’s operations materially
different from those anticipated by the Company’s market risk management
functions; (10) the Company may be unable to increase its insurance revenues as
expected; (11) changes in general economic conditions and increased competition
could adversely affect the Company’s operating results; (12) changes in other
regulations and government policies affecting bank holding companies and their
subsidiaries, including changes in monetary policies, could negatively impact
the Company’s operating results; and (13) the Company may experience
difficulties growing loan and deposit balances; and (14) the current
economic environment poses significant challenges for us and could adversely
affect our financial condition and results of operations; and (15) the United
States Government’s plan to purchase large amounts of illiquid mortgage-backed
and other securities from financial institutions may not be effective.
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.
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The
issuer has filed a registration statement (including a prospectus) with the SEC
for the offering to which this communication relates. Before you invest, you
should read the prospectus in that registration statement and other documents
the issuer has filed with the SEC for more complete information about the issuer
and this offering. You may get these documents for free by visiting EDGAR on the
SEC Website at www.sec.gov. Alternatively,
the issuer, any underwriter, or any dealer participating in the offering will
arrange to send you the prospectus if you request it by calling toll-free
1-800-221-1037.
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