CHCO City Holding Company

City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.3 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $29.1 million and diluted earnings of $1.96 per share for the quarter ended June 30, 2024. For the second quarter of 2024, the Company achieved a return on assets of 1.85% and a return on tangible equity of 22.2%.

Net Interest Income

The Company’s net interest income increased approximately $0.2 million, or 0.4%, from $54.4 million during the first quarter of 2024 to $54.6 million during the second quarter of 2024. The Company’s tax equivalent net interest income increased $0.2 million, or 0.4%, from $54.6 million for the first quarter of 2024 to $54.8 million for the second quarter of 2024. Due to an increase in average investment balances ($99.9 million) and an increase in the yield on investments (26 basis points), net interest income increased $1.0 million and $0.9 million respectively. Additionally, an increase in the average balance of deposits in depository institutions ($23.9 million) increased net interest income by $0.3 million and an increase in the yield on loans (2 basis points) increased net interest income by $0.2 million. These increases were largely offset by an increase in the cost of interest bearing liabilities (16 basis points) and an increase in the average balance of interest bearing liabilities ($118.6 million) which lowered net interest income by $1.5 million and $0.8 million respectively. The Company’s reported net interest margin decreased from 3.95% for the first quarter of 2024 to 3.87% for the second quarter of 2024.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased from 0.28%, or $11.5 million, at March 31, 2024 to 0.25%, or $10.2 million, at June 30, 2024. Total past due loans increased from $6.7 million, or 0.16% of total loans outstanding, at March 31, 2024, to $10.9 million, or 0.26% of total loans outstanding at June 30, 2024.

As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses, the Company recorded a provision for credit losses of $0.5 million in the second quarter of 2024, compared to a provision for credit losses of $0.4 million for the comparable period in 2023, and a recovery of credit losses of $0.2 million for the first quarter of 2024. The provision for credit losses in the second quarter was primarily due to an increase in the loss rate for residential real estate loans.

Non-interest Income

Non-interest income was $18.9 million during the quarter ended June 30, 2024, as compared to $20.3 million during the quarter ended June 30, 2023. During the second quarter of 2024, the Company reported $0.4 million of unrealized fair value gains on the Company’s equity securities as compared to $0.3 million of unrealized fair value losses on the Company’s equity securities during the second quarter of 2023.

Exclusive of these items, non-interest income decreased $2.0 million, or 9.9%, from $20.6 million for the second quarter of 2023 to $18.6 million for the second quarter of 2024. This decrease was largely attributable to a decrease of $2.4 million in bank owned life insurance due to lower death benefit proceeds. This decrease was partially offset by an increase of $0.4 million, or 18.1%, in trust and investment management fee income.

Non-interest Expenses

Non-interest expenses increased $2.0 million, or 5.8%, from $34.8 million in the second quarter of 2023 to $36.8 million in the second quarter of 2024. This increase was largely due to an increase in other expenses of $0.9 million and bankcard expenses of $0.6 million. In addition, salaries and employee benefits increased $0.3 million, and equipment and software related expenses increased $0.2 million.

Balance Sheet Trends

Loans increased $21.1 million (0.5%) from March 31, 2024 to $4.11 billion at June 30, 2024. Residential real estate loans increased $10.5 million (0.6%), home equity loans increased $8.3 million (4.9%), and commercial real estate loans increased $2.7 million (0.2%).

Period-end deposit balances increased $11.5 million from March 31, 2024, to June 30, 2024. Total average depository balances increased $101.7 million, or 2.1%, from the quarter ended March 31, 2024 to the quarter ended June 30, 2024. Average time deposits increased $52.0 million, average interest-bearing demand deposits increased $36.5 million, and average noninterest bearing deposits increased $19.1 million. These increases were partially offset by a decrease of $5.9 million in average savings deposits.

Income Tax Expense

The Company’s effective income tax rate for the second quarter of 2024 was 19.7% compared to 20.1% for the year ended December 31, 2023, and 19.4%, for the quarter ended June 30, 2023.

Capitalization and Liquidity

The Company’s gross loan to deposit ratio was 81.2% and its gross loan to asset ratio was 64.9% at June 30, 2024. The Company maintained investment securities totaling 23.5% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 61.8% of assets at June 30, 2024. Time deposits fund 18.1% of assets at June 30, 2024, with only 13.9% of time deposits having balances of more than $250,000, reflecting the core retail orientation of the Company.

City Holding Company is the parent company of City National Bank of West Virginia (“City National”). City National has borrowing facilities with the Federal Reserve Bank and the Federal Home Loan Bank that can be accessed as necessary to fund operations and to provide contingency funding. These borrowing facilities are collateralized by various loans held on City National’s balance sheet. As of June 30, 2024, City National had the capacity to borrow an additional $1.6 billion from these existing borrowing facilities. In addition, approximately $710 million of City National’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $780 million of City National’s investment securities unpledged at June 30, 2024.

The Company continues to be strongly capitalized with tangible equity of $526 million at June 30, 2024. The Company’s tangible equity ratio decreased slightly from 8.6% at December 31, 2023 to 8.5% at June 30, 2024. At June 30, 2024, City National’s Leverage Ratio was 9.7%, its Common Equity Tier I ratio was 15.2%, its Tier I Capital ratio was 15.2%, and its Total Risk-Based Capital ratio was 15.7%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On May 29, 2024, the Board of Directors of the Company approved a quarterly cash dividend of $0.715 per share payable July 31, 2024, to shareholders of record as of July 15, 2024. During the quarter ended June 30, 2024, the Company repurchased 142,000 common shares at a weighted average price of $100.24 per share as part of a one million share repurchase plan authorized by the Board of Directors in January 2024. As of June 30, 2024, the Company could repurchase 821,000 additional shares under the current program.

City National operates 97 branches across West Virginia, Kentucky, Virginia, and Ohio.

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. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, especially in the communities and markets in which we conduct our business; (2) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for credit losses may not be sufficient to absorb actual losses in our loan portfolio, and risk from concentrations in our loan portfolio; (3) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (4) changes in the interest rate environment; (5) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (6) changes in technology and increased competition, including competition from non-bank financial institutions; (7) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (8) difficulty growing loan and deposit balances; (9) our ability to effectively execute our business plan, including with respect to future acquisitions; (10) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries, including changes in deposit insurance premiums; (11) 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; (12) regulatory enforcement actions and adverse legal actions; (13) difficulty attracting and retaining key employees; and (14) other economic, competitive, technological, operational, governmental, regulatory, and market factors affecting our operations. 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. Further, the Company is required to evaluate subsequent events through the filing of its June 30, 2024 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary June 30, 2024 results and will adjust the amounts if necessary.

  CITY HOLDING COMPANY AND SUBSIDIARIES Financial Highlights (Unaudited)

Three Months Ended

 

Six Months Ended

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

 

June 30, 2024

June 30, 2023

  Earnings

Net Interest Income (fully taxable equivalent)

$

54,847

 

$

54,647

 

$

54,889

 

$

55,855

 

$

55,757

 

$

109,495

 

$

109,524

 

Net Income available to common shareholders

 

29,115

 

 

29,523

 

 

27,452

 

 

29,839

 

 

32,733

 

 

58,638

 

 

57,074

 

 

Per Share Data

Earnings per share available to common shareholders:

Basic

$

1.96

 

$

1.98

 

$

1.84

 

$

1.98

 

$

2.16

 

$

3.95

 

$

3.80

 

Diluted

 

1.96

 

 

1.97

 

 

1.84

 

 

1.98

 

 

2.16

 

 

3.94

 

 

3.79

 

Weighted average number of shares (in thousands):

Basic

 

14,695

 

 

14,795

 

 

14,758

 

 

14,922

 

 

14,994

 

 

14,721

 

 

14,897

 

Diluted

 

14,710

 

 

14,819

 

 

14,785

 

 

14,945

 

 

15,012

 

 

14,740

 

 

14,919

 

Period-end number of shares (in thousands)

 

14,701

 

 

14,825

 

 

14,832

 

 

14,901

 

 

15,007

 

 

14,701

 

 

15,007

 

Cash dividends declared

$

0.72

 

$

0.72

 

$

0.72

 

$

0.72

 

$

0.65

 

$

1.43

 

$

1.30

 

Book value per share (period-end)

$

46.71

 

$

46.02

 

$

45.65

 

$

40.94

 

$

42.39

 

$

46.71

 

$

42.39

 

Tangible book value per share (period-end)

 

35.75

 

 

35.10

 

 

34.69

 

 

29.98

 

 

31.50

 

 

35.75

 

 

31.50

 

Market data:

High closing price

$

106.43

 

$

111.40

 

$

115.77

 

$

99.49

 

$

97.92

 

$

111.40

 

$

100.27

 

Low closing price

 

98.35

 

 

99.28

 

 

87.43

 

 

87.51

 

 

83.57

 

 

98.35

 

 

83.57

 

Period-end closing price

 

106.25

 

 

104.22

 

 

110.26

 

 

90.35

 

 

89.99

 

 

106.25

 

 

89.99

 

Average daily volume (in thousands)

 

57

 

 

63

 

 

62

 

 

62

 

 

80

 

 

60

 

 

82

 

Treasury share activity:

Treasury shares repurchased (in thousands)

 

142

 

 

36

 

 

70

 

 

109

 

 

269

 

 

179

 

 

488

 

Average treasury share repurchase price

$

100.24

 

$

100.24

 

$

90.61

 

$

89.33

 

$

88.93

 

$

100.24

 

$

90.35

 

 

Key Ratios (percent)

Return on average assets

 

1.85

%

 

1.92

%

 

1.78

%

 

1.94

%

 

2.12

%

 

1.89

%

 

1.89

%

Return on average tangible equity

 

22.2

%

 

22.7

%

 

23.5

%

 

24.1

%

 

27.4

%

 

22.4

%

 

23.7

%

Yield on interest earning assets

 

5.38

%

 

5.33

%

 

5.23

%

 

5.08

%

 

4.87

%

 

5.36

%

 

4.76

%

Cost of interest bearing liabilities

 

2.06

%

 

1.90

%

 

1.70

%

 

1.46

%

 

1.22

%

 

1.98

%

 

1.05

%

Net Interest Margin

 

3.87

%

 

3.95

%

 

3.98

%

 

4.03

%

 

4.00

%

 

3.91

%

 

4.02

%

Non-interest income as a percent of total revenue

 

25.3

%

 

25.0

%

 

25.6

%

 

24.6

%

 

27.1

%

 

25.3

%

 

26.0

%

Efficiency Ratio

 

49.3

%

 

48.5

%

 

47.4

%

 

46.4

%

 

44.6

%

 

48.9

%

 

45.2

%

Price/Earnings Ratio (a)

 

13.53

 

 

13.17

 

 

14.95

 

 

11.40

 

 

10.40

 

 

13.46

 

 

11.85

 

 

Capital (period-end)

Average Shareholders' Equity to Average Assets

 

10.90

%

 

11.09

%

 

10.27

%

 

10.73

%

 

10.38

%

Tangible equity to tangible assets

 

8.50

%

 

8.46

%

 

8.57

%

 

7.55

%

 

7.90

%

Consolidated City Holding Company risk based capital ratios (b):

CET I

 

16.10

%

 

16.15

%

 

15.70

%

 

15.36

%

 

15.47

%

Tier I

 

16.10

%

 

16.15

%

 

15.70

%

 

15.36

%

 

15.47

%

Total

 

16.64

%

 

16.69

%

 

16.23

%

 

15.89

%

 

16.01

%

Leverage

 

10.30

%

 

10.45

%

 

10.23

%

 

10.05

%

 

9.80

%

City National Bank risk based capital ratios (b):

CET I

 

15.17

%

 

14.60

%

 

13.79

%

 

14.73

%

 

14.82

%

Tier I

 

15.17

%

 

14.60

%

 

13.79

%

 

14.73

%

 

14.82

%

Total

 

15.72

%

 

15.14

%

 

14.32

%

 

15.27

%

 

15.36

%

Leverage

 

9.68

%

 

9.42

%

 

8.94

%

 

9.61

%

 

9.36

%

 

Other (period-end)

Branches

 

97

 

 

97

 

 

98

 

 

99

 

 

99

 

FTE

 

948

 

 

953

 

 

957

 

 

966

 

 

963

 

 

Assets per FTE (in thousands)

$

6,689

 

$

6,625

 

$

6,447

 

$

6,291

 

$

6,383

 

Deposits per FTE (in thousands)

 

5,345

 

 

5,304

 

 

5,157

 

 

5,120

 

 

5,208

 

    (a) The price/earnings ratio is computed based on annualized quarterly earnings. (b) June 30, 2024 risk-based capital ratios are estimated.   CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) ($ in 000s, except per share data)

Three Months Ended

 

Six Months Ended

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

 

June 30, 2024

June 30, 2023

  Interest Income Interest and fees on loans

$

59,285

$

59,128

 

$

57,755

 

$

55,582

 

$

52,352

 

$

118,413

 

$

99,356

Interest on investment securities: Taxable

 

13,947

 

12,040

 

 

12,336

 

 

12,432

 

 

11,794

 

 

25,987

 

 

23,567

Tax-exempt

 

838

 

830

 

 

832

 

 

910

 

 

950

 

 

1,668

 

 

2,112

Interest on deposits in depository institutions

 

1,920

 

1,570

 

 

941

 

 

1,265

 

 

2,585

 

 

3,490

 

 

4,176

Total Interest Income

 

75,990

 

73,568

 

 

71,864

 

 

70,189

 

 

67,681

 

 

149,558

 

 

129,211

  Interest Expense Interest on deposits

 

15,897

 

14,097

 

 

12,479

 

 

10,551

 

 

8,567

 

 

29,994

 

 

14,257

Interest on short-term borrowings

 

3,900

 

3,621

 

 

3,693

 

 

2,990

 

 

2,963

 

 

7,521

 

 

5,344

Interest on FHLB long-term advances

 

1,568

 

1,423

 

 

1,026

 

 

1,034

 

 

649

 

 

2,991

 

 

649

Total Interest Expense

 

21,365

 

19,141

 

 

17,198

 

 

14,575

 

 

12,179

 

 

40,506

 

 

20,250

Net Interest Income

 

54,625

 

54,427

 

 

54,666

 

 

55,614

 

 

55,502

 

 

109,052

 

 

108,961

Provision for (Recovery of) credit losses

 

500

 

(180

)

 

(300

)

 

200

 

 

425

 

 

320

 

 

3,343

Net Interest Income After Provision for (Recovery of) Credit Losses

 

54,125

 

54,607

 

 

54,966

 

 

55,414

 

 

55,077

 

 

108,732

 

 

105,618

  Non-Interest Income Net (losses) gains on sale of investment securities

 

-

 

(1

)

 

(4,951

)

 

(730

)

 

-

 

 

(1

)

 

773

Unrealized gains (losses) recognized on equity securities still held

 

364

 

(152

)

 

365

 

 

-

 

 

(294

)

 

212

 

 

67

Service charges

 

6,980

 

7,035

 

 

7,158

 

 

7,124

 

 

6,906

 

 

14,015

 

 

13,469

Bankcard revenue

 

7,245

 

6,800

 

 

7,109

 

 

7,058

 

 

7,190

 

 

14,045

 

 

13,793

Trust and investment management fee income

 

2,762

 

2,623

 

 

2,563

 

 

2,409

 

 

2,339

 

 

5,385

 

 

4,591

Bank owned life insurance

 

775

 

927

 

 

1,218

 

 

807

 

 

3,208

 

 

1,702

 

 

4,012

Other income

 

785

 

716

 

 

774

 

 

742

 

 

952

 

 

1,501

 

 

2,278

Total Non-Interest Income

 

18,911

 

17,948

 

 

14,236

 

 

17,410

 

 

20,301

 

 

36,859

 

 

38,983

 

 

 

 

Non-Interest Expense Salaries and employee benefits

 

18,751

 

18,878

 

 

18,772

 

 

18,289

 

 

18,429

 

 

37,629

 

 

36,102

Occupancy related expense

 

2,856

 

2,840

 

 

2,917

 

 

2,950

 

 

2,811

 

 

5,696

 

 

5,451

Equipment and software related expense

 

3,130

 

2,929

 

 

2,824

 

 

2,830

 

 

2,883

 

 

6,059

 

 

5,975

FDIC insurance expense

 

718

 

711

 

 

868

 

 

919

 

 

690

 

 

1,429

 

 

1,135

Advertising

 

972

 

867

 

 

588

 

 

790

 

 

974

 

 

1,839

 

 

1,734

Bankcard expenses

 

2,290

 

2,039

 

 

2,014

 

 

2,188

 

 

1,736

 

 

4,329

 

 

3,245

Postage, delivery, and statement mailings

 

714

 

666

 

 

615

 

 

668

 

 

596

 

 

1,380

 

 

1,243

Office supplies

 

432

 

453

 

 

477

 

 

457

 

 

591

 

 

885

 

 

1,011

Legal and professional fees

 

551

 

482

 

 

478

 

 

529

 

 

558

 

 

1,033

 

 

1,028

Telecommunications

 

624

 

600

 

 

614

 

 

568

 

 

623

 

 

1,224

 

 

1,229

Repossessed asset losses (gains), net of expenses

 

6

 

229

 

 

(50

)

 

40

 

 

22

 

 

235

 

 

38

Other expenses

 

5,728

 

5,206

 

 

4,992

 

 

4,800

 

 

4,848

 

 

10,934

 

 

15,193

Total Non-Interest Expense

 

36,772

 

35,900

 

 

35,109

 

 

35,028

 

 

34,761

 

 

72,672

 

 

73,384

Income Before Income Taxes

 

36,264

 

36,655

 

 

34,093

 

 

37,796

 

 

40,617

 

 

72,919

 

 

71,217

Income tax expense

 

7,149

 

7,132

 

 

6,641

 

 

7,957

 

 

7,884

 

 

14,281

 

 

14,143

Net Income Available to Common Shareholders

$

29,115

$

29,523

 

$

27,452

 

$

29,839

 

$

32,733

 

$

58,638

 

$

57,074

  Distributed earnings allocated to common shareholders

$

10,418

$

10,505

 

$

10,508

 

$

10,554

 

$

9,668

 

$

20,835

 

$

19,336

Undistributed earnings allocated to common shareholders

 

18,439

 

18,757

 

 

16,696

 

 

19,004

 

 

22,774

 

 

37,284

 

 

37,233

Net earnings allocated to common shareholders

$

28,857

$

29,262

 

$

27,204

 

$

29,558

 

$

32,442

 

$

58,119

 

$

56,569

  Average common shares outstanding

 

14,695

 

14,795

 

 

14,758

 

 

14,922

 

 

14,994

 

 

14,721

 

 

14,897

Shares for diluted earnings per share

 

14,710

 

14,819

 

 

14,785

 

 

14,945

 

 

15,012

 

 

14,740

 

 

14,919

  Basic earnings per common share

$

1.96

$

1.98

 

$

1.84

 

$

1.98

 

$

2.16

 

$

3.95

 

$

3.80

Diluted earnings per common share

$

1.96

$

1.97

 

$

1.84

 

$

1.98

 

$

2.16

 

$

3.94

 

$

3.79

  CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated Balance Sheets ($ in 000s)

(Unaudited)

(Unaudited)

 

(Unaudited)

(Unaudited)

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

  Assets Cash and due from banks

$

141,168

 

$

121,853

 

$

123,033

 

$

67,402

 

$

69,622

 

Interest-bearing deposits in depository institutions

 

76,818

 

 

196,829

 

 

33,243

 

 

43,314

 

 

161,659

 

Cash and cash equivalents

 

217,986

 

 

318,682

 

 

156,276

 

 

110,716

 

 

231,281

 

  Investment securities available-for-sale, at fair value

 

1,456,685

 

 

1,347,657

 

 

1,338,137

 

 

1,358,219

 

 

1,419,933

 

Other securities

 

31,237

 

 

30,681

 

 

30,966

 

 

29,022

 

 

29,262

 

Total investment securities

 

1,487,922

 

 

1,378,338

 

 

1,369,103

 

 

1,387,241

 

 

1,449,195

 

  Gross loans

 

4,112,873

 

 

4,091,788

 

 

4,125,923

 

 

4,007,482

 

 

3,922,142

 

Allowance for credit losses

 

(22,688

)

 

(22,310

)

 

(22,745

)

 

(23,128

)

 

(22,751

)

Net loans

 

4,090,185

 

 

4,069,478

 

 

4,103,178

 

 

3,984,354

 

 

3,899,391

 

  Bank owned life insurance

 

119,650

 

 

118,875

 

 

118,122

 

 

117,979

 

 

117,173

 

Premises and equipment, net

 

71,041

 

 

71,623

 

 

72,146

 

 

72,682

 

 

73,118

 

Accrued interest receivable

 

21,826

 

 

21,759

 

 

20,290

 

 

19,223

 

 

17,973

 

Net deferred tax assets

 

43,602

 

 

43,969

 

 

42,216

 

 

58,811

 

 

46,944

 

Goodwill and intangible assets

 

161,236

 

 

161,832

 

 

162,568

 

 

163,461

 

 

163,426

 

Other assets

 

127,947

 

 

129,627

 

 

124,153

 

 

161,659

 

 

148,333

 

Total Assets

$

6,341,395

 

$

6,314,183

 

$

6,168,052

 

$

6,076,126

 

$

6,146,834

 

  Liabilities Deposits: Noninterest-bearing

$

1,354,660

 

$

1,359,072

 

$

1,342,804

 

$

1,333,474

 

$

1,373,106

 

Interest-bearing: Demand deposits

 

1,333,169

 

 

1,330,268

 

 

1,291,011

 

 

1,319,783

 

 

1,337,445

 

Savings deposits

 

1,233,834

 

 

1,266,211

 

 

1,259,457

 

 

1,282,642

 

 

1,343,571

 

Time deposits

 

1,145,617

 

 

1,100,250

 

 

1,040,990

 

 

1,009,235

 

 

960,941

 

Total deposits

 

5,067,280

 

 

5,055,801

 

 

4,934,262

 

 

4,945,134

 

 

5,015,063

 

Short-term borrowings FHLB short-term advances

 

-

 

 

-

 

 

25,000

 

 

-

 

 

-

 

Customer repurchase agreements

 

322,668

 

 

304,941

 

 

309,856

 

 

278,671

 

 

271,714

 

FHLB long-term advances

 

150,000

 

 

150,000

 

 

100,000

 

 

100,000

 

 

100,000

 

Other liabilities

 

114,707

 

 

121,210

 

 

121,868

 

 

142,187

 

 

123,865

 

Total Liabilities

 

5,654,655

 

 

5,631,952

 

 

5,490,986

 

 

5,465,992

 

 

5,510,642

 

  Stockholders' Equity Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

Capital surplus

 

174,834

 

 

175,747

 

 

177,424

 

 

177,113

 

 

176,746

 

Retained earnings

 

817,549

 

 

799,024

 

 

780,299

 

 

763,425

 

 

744,248

 

Cost of common stock in treasury

 

(230,944

)

 

(218,555

)

 

(217,737

)

 

(211,430

)

 

(201,973

)

Accumulated other comprehensive loss: Unrealized loss on securities available-for-sale

 

(119,737

)

 

(119,023

)

 

(107,958

)

 

(163,171

)

 

(127,026

)

Underfunded pension liability

 

(2,581

)

 

(2,581

)

 

(2,581

)

 

(3,422

)

 

(3,422

)

Total Accumulated Other Comprehensive Loss

 

(122,318

)

 

(121,604

)

 

(110,539

)

 

(166,593

)

 

(130,448

)

Total Stockholders' Equity

 

686,740

 

 

682,231

 

 

677,066

 

 

610,134

 

 

636,192

 

Total Liabilities and Stockholders' Equity

$

6,341,395

 

$

6,314,183

 

$

6,168,052

 

$

6,076,126

 

$

6,146,834

 

  Regulatory Capital Total CET 1 capital

$

650,108

 

$

644,235

 

$

627,579

 

$

615,798

 

$

605,661

 

Total tier 1 capital

 

650,108

 

 

644,235

 

 

627,579

 

 

615,798

 

 

605,661

 

Total risk-based capital

 

671,959

 

 

665,707

 

 

648,646

 

 

637,245

 

 

626,730

 

Total risk-weighted assets

 

4,037,614

 

 

3,989,171

 

 

3,996,688

 

 

4,009,798

 

 

3,913,870

 

CITY HOLDING COMPANY AND SUBSIDIARIES Loan Portfolio (Unaudited) ($ in 000s)  

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

  Commercial and industrial

$

408,312

$

407,770

$

426,950

$

424,647

$

417,847

  1-4 Family

 

195,992

 

202,378

 

206,237

 

197,081

 

184,919

Hotels

 

370,954

 

354,929

 

357,142

 

321,236

 

324,745

Multi-family

 

190,390

 

186,555

 

189,165

 

192,329

 

191,483

Non Residential Non-Owner Occupied

 

668,330

 

682,609

 

680,590

 

651,498

 

612,703

Non Residential Owner Occupied

 

235,993

 

232,440

 

240,328

 

222,544

 

222,852

Commercial real estate (1)

 

1,661,659

 

1,658,911

 

1,673,462

 

1,584,688

 

1,536,702

  Residential real estate (2)

 

1,797,260

 

1,786,764

 

1,788,150

 

1,768,358

 

1,746,618

Home equity

 

179,607

 

171,292

 

167,201

 

159,630

 

151,012

Consumer

 

62,352

 

63,556

 

65,246

 

65,586

 

65,201

DDA overdrafts

 

3,683

 

3,495

 

4,914

 

4,573

 

4,762

Gross Loans

$

4,112,873

$

4,091,788

$

4,125,923

$

4,007,482

$

3,922,142

  Construction loans included in: (1) - Commercial real estate loans

$

2,233

$

6,651

$

2,459

$

2,533

$

3,361

(2) - Residential real estate loans

 

9,766

 

19,709

 

23,066

 

20,056

 

20,470

  CITY HOLDING COMPANY AND SUBSIDIARIES Asset Quality Information (Unaudited) ($ in 000s)

Three Months Ended

 

Six Months Ended

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

 

June 30, 2024

June 30, 2023

Allowance for Credit Losses Balance at beginning of period

$

22,310

 

$

22,745

 

$

23,128

 

$

22,751

 

$

22,724

 

$

22,745

 

$

17,108

 

  Charge-offs: Commercial and industrial

 

(61

)

 

(306

)

 

(84

)

 

-

 

 

(69

)

 

(367

)

 

(69

)

Commercial real estate

 

(40

)

 

(31

)

 

(5

)

 

(256

)

 

(117

)

 

(71

)

 

(120

)

Residential real estate

 

(286

)

 

(19

)

 

(68

)

 

(88

)

 

(20

)

 

(305

)

 

(52

)

Home equity

 

(121

)

 

(27

)

 

(21

)

 

(112

)

 

(200

)

 

(148

)

 

(267

)

Consumer

 

(20

)

 

(115

)

 

(6

)

 

(10

)

 

(109

)

 

(135

)

 

(171

)

DDA overdrafts

 

(373

)

 

(356

)

 

(416

)

 

(422

)

 

(357

)

 

(729

)

 

(807

)

Total charge-offs

 

(901

)

 

(854

)

 

(600

)

 

(888

)

 

(872

)

 

(1,755

)

 

(1,486

)

  Recoveries: Commercial and industrial

 

38

 

 

25

 

 

70

 

 

597

 

 

86

 

 

63

 

 

169

 

Commercial real estate

 

165

 

 

11

 

 

17

 

 

74

 

 

28

 

 

176

 

 

186

 

Residential real estate

 

179

 

 

49

 

 

4

 

 

28

 

 

5

 

 

228

 

 

15

 

Home equity

 

38

 

 

9

 

 

13

 

 

18

 

 

12

 

 

47

 

 

16

 

Consumer

 

24

 

 

98

 

 

45

 

 

27

 

 

28

 

 

122

 

 

51

 

DDA overdrafts

 

335

 

 

407

 

 

368

 

 

321

 

 

315

 

 

742

 

 

713

 

Total recoveries

 

779

 

 

599

 

 

517

 

 

1,065

 

 

474

 

 

1,378

 

 

1,150

 

  Net (charge-offs) recoveries

 

(122

)

 

(255

)

 

(83

)

 

177

 

 

(398

)

 

(377

)

 

(336

)

Provision for (recovery of) credit losses

 

500

 

 

(180

)

 

(300

)

 

200

 

 

425

 

 

320

 

 

3,343

 

PCD Loan Reserves

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,811

 

Adoption of ASU 2022-02

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(175

)

Balance at end of period

$

22,688

 

$

22,310

 

$

22,745

 

$

23,128

 

$

22,751

 

$

22,688

 

$

22,751

 

  Loans outstanding

$

4,112,873

 

$

4,091,788

 

$

4,125,923

 

$

4,007,482

 

$

3,922,142

 

Allowance as a percent of loans outstanding

 

0.55

%

 

0.55

%

 

0.55

%

 

0.58

%

 

0.58

%

Allowance as a percent of non-performing loans

 

236.8

%

 

206.8

%

 

290.6

%

 

440.1

%

 

405.5

%

  Average loans outstanding

$

4,092,464

 

$

4,092,529

 

$

4,045,889

 

$

3,956,871

 

$

3,896,284

 

$

4,092,497

 

$

3,798,781

 

Net charge-offs (recoveries) (annualized) as a percent of average loans outstanding

 

0.01

%

 

0.02

%

 

0.01

%

 

(0.02

)%

 

0.04

%

 

0.02

%

 

0.02

%

    CITY HOLDING COMPANY AND SUBSIDIARIES Asset Quality Information, continued (Unaudited) ($ in 000s)

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

Nonaccrual Loans Residential real estate

$

3,214

 

$

3,452

 

$

2,849

 

$

2,839

 

$

2,774

 

Home equity

 

63

 

 

121

 

 

111

 

 

75

 

 

24

 

Commercial and industrial

 

3,135

 

 

3,405

 

 

2,211

 

 

716

 

 

741

 

Commercial real estate

 

3,118

 

 

3,807

 

 

2,387

 

 

1,355

 

 

1,821

 

Consumer

 

-

 

 

1

 

 

-

 

 

1

 

 

36

 

Total nonaccrual loans

 

9,530

 

 

10,786

 

 

7,558

 

 

4,986

 

 

5,396

 

Accruing loans past due 90 days or more

 

50

 

 

-

 

 

270

 

 

269

 

 

215

 

Total non-performing loans

 

9,580

 

 

10,786

 

 

7,828

 

 

5,255

 

 

5,611

 

Other real estate owned

 

629

 

 

752

 

 

731

 

 

720

 

 

874

 

Total non-performing assets

$

10,209

 

$

11,538

 

$

8,559

 

$

5,975

 

$

6,485

 

  Non-performing assets as a percent of loans and other real estate owned

 

0.25

%

 

0.28

%

 

0.21

%

 

0.15

%

 

0.17

%

  Past Due Loans Residential real estate

$

7,991

 

$

5,035

 

$

8,059

 

$

6,247

 

$

5,884

 

Home equity

 

819

 

 

1,028

 

 

1,235

 

 

1,278

 

 

784

 

Commercial and industrial

 

1,087

 

 

26

 

 

435

 

 

568

 

 

142

 

Commercial real estate

 

565

 

 

138

 

 

715

 

 

1,478

 

 

238

 

Consumer

 

97

 

 

75

 

 

129

 

 

84

 

 

57

 

DDA overdrafts

 

327

 

 

406

 

 

364

 

 

398

 

 

341

 

Total past due loans

$

10,886

 

$

6,708

 

$

10,937

 

$

10,053

 

$

7,446

 

  Total past due loans as a percent of loans outstanding

 

0.26

%

 

0.16

%

 

0.27

%

 

0.25

%

 

0.19

%

  CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated Average Balance Sheets, Yields, and Rates (Unaudited) ($ in 000s)

Three Months Ended

June 30, 2024

March 31, 2024

June 30, 2023

Average

 

Yield/

Average

 

Yield/

Average

 

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

  Assets: Loan portfolio (1): Residential real estate (2)

$

1,969,769

 

$

24,763

5.06

%

$

1,953,647

 

$

24,148

4.97

%

$

1,894,269

 

$

21,702

4.60

%

Commercial, financial, and agriculture (2)

 

2,055,263

 

 

33,524

6.56

%

 

2,070,054

 

 

33,980

6.60

%

 

1,933,238

 

 

29,754

6.17

%

Installment loans to individuals (2), (3)

 

67,432

 

 

998

5.95

%

 

68,828

 

 

999

5.84

%

 

68,777

 

 

898

5.24

%

Total loans

 

4,092,464

 

 

59,285

5.83

%

 

4,092,529

 

 

59,127

5.81

%

 

3,896,284

 

 

52,354

5.39

%

Securities: Taxable

 

1,302,197

 

 

13,947

4.31

%

 

1,200,310

 

 

12,040

4.03

%

 

1,301,063

 

 

11,794

3.64

%

Tax-exempt (4)

 

158,894

 

 

1,060

2.68

%

 

160,847

 

 

1,051

2.63

%

 

174,410

 

 

1,203

2.77

%

Total securities

 

1,461,091

 

 

15,007

4.13

%

 

1,361,157

 

 

13,091

3.87

%

 

1,475,473

 

 

12,997

3.53

%

Deposits in depository institutions

 

139,852

 

 

1,920

5.52

%

 

115,953

 

 

1,570

5.45

%

 

223,671

 

 

2,585

4.64

%

Total interest-earning assets

 

5,693,407

 

 

76,212

5.38

%

 

5,569,639

 

 

73,788

5.33

%

 

5,595,428

 

 

67,936

4.87

%

Cash and due from banks

 

103,004

 

 

98,966

 

 

72,342

 

Premises and equipment, net

 

71,491

 

 

71,954

 

 

73,450

 

Goodwill and intangible assets

 

161,607

 

 

162,257

 

 

163,847

 

Other assets

 

316,440

 

 

306,278

 

 

313,925

 

Less: Allowance for credit losses

 

(22,694

)

 

(23,142

)

 

(23,046

)

Total assets

$

6,323,255

 

$

6,185,952

 

$

6,195,946

 

  Liabilities: Interest-bearing demand deposits

$

1,320,402

 

$

3,845

1.17

%

$

1,283,868

 

$

3,439

1.08

%

$

1,328,520

 

$

2,773

0.84

%

Savings deposits

 

1,248,330

 

 

2,232

0.72

%

 

1,254,253

 

 

2,273

0.73

%

 

1,365,894

 

 

1,942

0.57

%

Time deposits (2)

 

1,125,036

 

 

9,820

3.51

%

 

1,073,083

 

 

8,385

3.14

%

 

962,299

 

 

3,852

1.61

%

Short-term borrowings

 

336,434

 

 

3,900

4.66

%

 

313,623

 

 

3,621

4.64

%

 

294,255

 

 

2,963

4.04

%

FHLB long-term advances

 

150,000

 

 

1,568

4.20

%

 

136,813

 

 

1,423

4.18

%

 

65,934

 

 

649

3.95

%

Total interest-bearing liabilities

 

4,180,202

 

 

21,365

2.06

%

 

4,061,640

 

 

19,141

1.90

%

 

4,016,902

 

 

12,179

1.22

%

Noninterest-bearing demand deposits

 

1,341,642

 

 

1,322,540

 

 

1,419,771

 

Other liabilities

 

112,301

 

 

115,589

 

 

116,083

 

Stockholders' equity

 

689,110

 

 

686,183

 

 

643,190

 

Total liabilities and stockholders' equity

$

6,323,255

 

$

6,185,952

 

$

6,195,946

 

Net interest income

$

54,847

$

54,647

$

55,757

Net yield on earning assets

3.87

%

3.95

%

4.00

%

  (1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of net loan fees have been included in interest income:   Loan fees, net

$

60

$

133

$

393

  (2) Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the Company's acquisitions:   Residential real estate

$

72

$

45

$

78

Commercial, financial, and agriculture

 

683

 

1,065

 

709

Installment loans to individuals

 

6

 

6

 

8

Time deposits

 

21

 

63

 

154

$

782

$

1,179

$

949

  (3) Includes the Company’s consumer and DDA overdrafts loan categories. (4) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.   CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated Average Balance Sheets, Yields, and Rates (Unaudited) ($ in 000s)

Six Months Ended

June 30, 2024

June 30, 2023

Average

 

Yield/

Average

 

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

  Assets: Loan portfolio (1): Residential real estate (2)

$

1,962,337

 

$

48,912

5.01

%

$

1,869,375

 

$

41,707

4.50

%

Commercial, financial, and agriculture (2)

 

2,062,016

 

 

67,504

6.58

%

 

1,866,177

 

 

56,001

6.05

%

Installment loans to individuals (2), (3)

 

68,144

 

 

1,997

5.89

%

 

63,229

 

 

1,648

5.26

%

Total loans

 

4,092,497

 

 

118,413

5.82

%

 

3,798,781

 

 

99,356

5.27

%

Securities: Taxable

 

1,251,253

 

 

25,987

4.18

%

 

1,312,118

 

 

23,567

3.62

%

Tax-exempt (4)

 

159,871

 

 

2,111

2.66

%

 

188,984

 

 

2,674

2.85

%

Total securities

 

1,411,124

 

 

28,098

4.00

%

 

1,501,102

 

 

26,241

3.53

%

Deposits in depository institutions

 

127,902

 

 

3,490

5.49

%

 

192,027

 

 

4,176

4.39

%

Total interest-earning assets

 

5,631,523

 

 

150,001

5.36

%

 

5,491,910

 

 

129,773

4.77

%

Cash and due from banks

 

100,985

 

 

70,170

 

Premises and equipment, net

 

71,723

 

 

72,441

 

Goodwill and intangible assets

 

161,932

 

 

144,305

 

Other assets

 

311,358

 

 

320,646

 

Less: Allowance for credit losses

 

(22,918

)

 

(20,608

)

Total assets

$

6,254,603

 

$

6,078,864

 

  Liabilities: Interest-bearing demand deposits

$

1,302,135

 

$

7,284

1.12

%

$

1,282,009

 

$

4,513

0.71

%

Savings deposits

 

1,251,292

 

 

4,505

0.72

%

 

1,371,077

 

 

3,290

0.48

%

Time deposits (2)

 

1,099,059

 

 

18,205

3.33

%

 

932,606

 

 

6,453

1.40

%

Short-term borrowings

 

325,028

 

 

7,521

4.65

%

 

288,092

 

 

5,344

3.74

%

FHLB long-term advances

 

143,407

 

 

2,991

4.19

%

 

33,149

 

 

649

3.95

%

Total interest-bearing liabilities

 

4,120,921

 

 

40,506

1.98

%

 

3,906,933

 

 

20,249

1.05

%

Noninterest-bearing demand deposits

 

1,332,091

 

 

1,420,221

 

Other liabilities

 

113,945

 

 

122,709

 

Stockholders' equity

 

687,646

 

 

629,001

 

Total liabilities and stockholders' equity

$

6,254,603

 

$

6,078,864

 

Net interest income

$

109,495

$

109,524

Net yield on earning assets

3.91

%

4.02

%

  (1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of net loan fees have been included in interest income:   Loan fees, net

$

193

$

911

  (2) Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the Company's acquisitions:   Residential real estate

$

118

$

117

Commercial, financial, and agriculture

 

1,747

 

855

Installment loans to individuals

 

12

 

11

Time deposits

 

84

 

164

$

1,961

$

1,147

  (3) Includes the Company’s consumer and DDA overdrafts loan categories. (4) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.   CITY HOLDING COMPANY AND SUBSIDIARIES Non-GAAP Reconciliations (Unaudited) ($ in 000s, except per share data)  

Three Months Ended

 

Six Months Ended

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

 

June 30, 2024

June 30, 2023

Net Interest Income/Margin Net interest income ("GAAP")

$

54,625

 

$

54,427

 

$

54,666

 

$

55,614

 

$

55,502

 

$

109,052

$

108,961

Taxable equivalent adjustment

 

222

 

 

220

 

 

223

 

 

243

 

 

255

 

 

443

 

563

Net interest income, fully taxable equivalent

$

54,847

 

$

54,647

 

$

54,889

 

$

55,857

 

$

55,757

 

$

109,495

$

109,524

  Tangible Equity Ratio (period end) Equity to assets ("GAAP")

 

10.83

%

 

10.81

%

 

10.98

%

 

10.04

%

 

10.35

%

Effect of goodwill and other intangibles, net

 

(2.33

)%

 

(2.35

)%

 

(2.41

)%

 

(2.49

)%

 

(2.45

)%

Tangible common equity to tangible assets

 

8.50

%

 

8.46

%

 

8.57

%

 

7.55

%

 

7.90

%

    Commercial Loan Information (period end)   Commercial Sector

Total

% of Total Loans

Average DSC

Average LTV

  Natural Gas Extraction

$

26,230

 

 

1.16

%

 

3.71

 

NA

Natural Gas Distribution

 

12,800

 

 

0.57

%

 

5.46

 

NA

Masonry Contractors

 

49,538

 

 

2.19

%

 

1.04

 

 

84%

Sheet Metal Work Manufacturing

 

31,444

 

 

1.39

%

 

1.22

 

 

68%

Beer & Ale Merchant Wholesalers

 

26,894

 

 

1.19

%

 

3.28

 

NA

Gasoline Stations with Convenience Stores

 

42,330

 

 

1.88

%

 

4.76

 

 

65%

Lessors of Residential Builidings & Dwellings

 

445,176

 

 

19.72

%

 

1.89

 

 

66%

1-4 Family

 

235,032

 

 

10.41

%

 

2.97

 

 

67%

Multi-Family

 

173,574

 

 

7.69

%

 

1.84

 

 

64%

Lessors of Nonresidential Buildings

 

608,933

 

 

26.98

%

 

1.70

 

 

65%

Office Buildings

 

125,922

 

 

5.58

%

 

1.64

 

 

62%

Lessors of Mini-Warehouses & Self-Storage Units

 

50,941

 

 

2.26

%

 

1.43

 

 

61%

Assisted Living Facilities

 

27,184

 

 

1.20

%

 

1.38

 

 

61%

Hotels & Motels

 

401,096

 

 

17.77

%

 

1.45

 

 

63%

 

Average Balance

Median Balance

Commercial, Financial, and Agriculture Loans

$

449

 

$

93

 

Commercial Real Estate Loans

 

514

 

 

121

 

    CITY HOLDING COMPANY AND SUBSIDIARIES Non-GAAP Reconciliations, continued (Unaudited) ($ in 000s, except per share data)     Estimated Uninsured Deposits by Deposit Type

June 30, 2024

March 31, 2024

Noninterest-Bearing Demand Deposits

 

17

%

 

16

%

  Interest-Bearing Deposits Demand Deposits

 

13

%

 

12

%

Savings Deposits

 

12

%

 

12

%

Time Deposits

 

16

%

 

15

%

Total Deposits

 

14

%

 

14

%

    The amounts listed above represent management's best estimate as of the respective period shown of uninsured deposits (either with balances above $250,000 or not collateralized by investment securities).     CITY HOLDING COMPANY AND SUBSIDIARIES Non-GAAP Reconciliations, continued (Unaudited) ($ in 000s, except per share data) Net Growth in DDA Accounts Year

New DDA Accounts

Net Number of New Accounts

Percentage

  2024 YTD

 

16,423

 

 

2,849

 

 

1.1

%

2023*

 

31,745

 

 

4,768

 

 

1.9

%

2022

 

28,442

 

 

4,544

 

 

1.9

%

2021

 

32,800

 

 

8,860

 

 

3.8

%

2020

 

30,360

 

 

6,740

 

 

3.0

%

2019

 

32,040

 

 

3,717

 

 

1.7

%

2018*

 

30,400

 

 

4,310

 

 

2.2

%

2017

 

28,525

 

 

2,711

 

 

1.4

%

2016

 

28,650

 

 

2,820

 

 

1.5

%

    * - amounts exclude accounts added in connection with the acquisitions of Poage Bankshares, Inc. (2018), Farmers Deposit Bancorp, Inc.(2018) and Citizens Commerce Bancshares, Inc. (2023).

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240723709938/en/

David L. Bumgarner, Executive Vice President and Chief Financial Officer (304) 769-1169