CHARLESTON, W.Va., May 27, 2011 /PRNewswire/ -- City Holding Company, "the Company" (NASDAQ:CHCO), a $2.7 billion bank holding company headquartered in Charleston, announced today that at its meeting of the Board of Directors held on May 25, 2011, the Board voted to allow the Company's Shareholder Rights Plan to expire on June 12, 2011.
On June 13, 2001, the Board of Directors of City Holding Company approved a Rights Agreement between the Company and SunTrust Bank, as Rights Agent. In accordance with the Rights Agreement, the Board declared a dividend distribution of one right for each outstanding share of common stock of the Company to shareholders of record at the close of business on July 1, 2001.
Each Right entitled the holder to purchase from the Company one one-thousandth (1/1000th) of a share of a series of the Company's preferred stock designated as Junior Participating Cumulative Preferred Stock Series A ("Preferred Stock") at a price of $40 per one one-thousandth (1/1000th) of a share, subject to adjustment. Each one one-thousandth of a share of Preferred Stock was structured to be the equivalent of one share of Common Stock of the Company ("Common Stock").
The Rights Agreement will expire at 5:00 P.M. (Charleston, Eastern Standard Time) on June 12, 2011.
City Holding Company is the parent company of City National Bank of West Virginia. City National operates 68 branches across West Virginia, Eastern Kentucky and Southern Ohio.
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 not 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) changes in general economic conditions and increased competition could adversely affect the Company's operating results; (11) 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; (12) the Company may experience difficulties growing loan and deposit balances; (13) the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; (14) continued 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 resulting in either actual losses or other than temporary impairments on such investments; and (15) the effects of the Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") recently adopted by the United States Congress. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. 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.
SOURCE City Holding Company