City Holding Company Completes Acquisitions Bolstering Kentucky Presence

CHARLESTON, WV–(BUSINESS WIRE)–City Holding Company (“City”) (Nasdaq: CHCO), the parent company of City
National Bank of West Virginia, announced today that it has completed
its acquisitions of Poage Bankshares, Inc., (“Poage”) (Nasdaq: PBSK),
the parent company of Town Square Bank, Ashland, Kentucky, and Farmers
Deposit Bancorp, Inc. (“Farmers Deposit”), the parent company of Farmers
Deposit Bank, Cynthiana, Kentucky. Both acquisitions became effective as
of the close of business on December 7, 2018. The acquisition of Poage
was structured as a stock transaction valued at approximately $84.7
million, or $24.22 per share of Poage common stock. The acquisition of
Farmers Deposit was structured as a cash transaction valued at $24.9
million, or $1,174.14 per share of Farmers Deposit common stock. City,
Poage and Farmers Deposit first announced that they had entered into
separate agreements to merge on July 11, 2018. The acquisition of Poage
included the merger of Town Square Bank into City National Bank of West
Virginia, and the acquisition of Farmers Deposit included the merger of
Farmers Deposit Bank into City National Bank of West Virginia.

Based upon financial data as of September 30, 2018, the combined company
will have $5.0 billion in assets, deposits of $3.9 billion, and gross
loans of $3.5 billion, bolstering City’s presence in the
Huntington-Ashland and Lexington, Kentucky MSAs. “It is a pleasure to
welcome the staff and customers of Town Square Bank and Farmers Deposit
Bank into the City family,” remarked Charles R. (Skip) Hageboeck,
President and Chief Executive Officer of City. “With strong roots in the
region, and an emphasis on community service, the synergies of our
organizations are strong. We believe the combination of our respective
businesses will be positive for shareholders, customers, and employees.
On a combined basis, through September 30, 2018, Poage and Farmers
Deposit incurred operating expenses of over $15 million, or more than
$20 million on an annualized basis. With multiple overlapping branches
in the Ashland market, more favorable data processing contracts and
costs, and the normal efficiencies of larger organizations, we
anticipate cost savings of more than 45%, which is good for
shareholders. At the same time, we have been able to retain more
employees than originally anticipated. We retained more than a dozen
administrative/operational staff from Town Square who are filling open
positions that existed at City. And, from a customer’s perspective, they
will continue to see the same people who have been serving them at Town
Square and Farmers Deposit, but will have access to enhanced products
and services. City’s dedication to remain a community-focused bank,
means that commitment to the local communities will continue to be quite
strong.”

Keefe, Bruyette & Woods, Inc. served as financial advisor and Dinsmore &
Shohl LLP served as legal counsel to City in both transactions. Sandler
O’Neill & Partners, L.P. served as financial advisor and Luse Gorman, PC
served as legal counsel to Poage in the Poage transaction. ProBank
Austin served as financial advisor and Stites & Harbison, PLLC served as
legal counsel to Farmers Deposit in the Farmers Deposit transaction.

About City Holding Company

City Holding Company, headquartered in Charleston, West Virginia is a
financial holding company which owns City National Bank of West
Virginia. City received the highest ranking in customer satisfaction in
the north central region in J.D. Power’s 2018 U.S. Retail Banking
Satisfaction Study. City provides a full range of consumer and
commercial banking services to individuals, businesses and industries
through its 87 branches across West Virginia, Virginia, Kentucky and
Ohio. As of September 30, 2018, City had $4.4 billion in total assets,
$3.4 billion in deposits, and $3.1 billion in gross loans. For
additional information, locations, and hours of operation, please visit www.bankatcity.com.

Safe Harbor Statement:

Statements made in this news release that are not historical facts are
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities
Exchange Act of 1934, as amended, and the Private Securities Litigation
Reform Act of 1995. These statements are subject to certain risks and
uncertainties including, but not limited to, the successful integration
of the transactions contemplated in this release, which includes the
retention of the acquired customer relationships, adverse changes in
economic conditions, the impact of competitive products and pricing and
the other risks set forth in City’s filings with the SEC. As a result,
actual results may differ materially from the forward-looking statements
in this news release. These factors are not necessarily all of the
factors that could cause City’s actual results, performance, or
achievements to differ materially from those expressed in or implied by
any of the forward-looking statements. Other unknown or unpredictable
factors also could harm City’s results.

All forward-looking statements attributable to City, or persons acting
on City’s behalf, are expressly qualified in their entirety by the
cautionary statements set forth above. Forward-looking statements speak
only as of the date they are made and City does not undertake or assume
any obligation to update publicly any of these statements to reflect
actual results, new information or future events, changes in
assumptions, or changes in other factors affecting forward-looking
statements, except to the extent required by applicable laws. If City
updates one or more forward-looking statements, no inference should be
drawn that City will make additional updates with respect to those or
other forward-looking statements.

Contacts

For Further Information Contact:
Charles R. Hageboeck, Chief
Executive Officer and President
(304) 769-1102

leverton

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