City Holding Company Announces Record Annual Earnings

Rhea-AI Summary

City Holding Company (NASDAQ:CHCO) reported record net income of $117.1 million and diluted earnings of $7.89 per share for 2024, achieving a return on assets of 1.85% and return on tangible equity of 21.2%. The company's net interest income increased slightly from $219.2 million in 2023 to $220.2 million in 2024.

The bank's loan portfolio grew by $148.9 million (3.6%) to $4.27 billion, while deposits increased by $209.9 million (4.3%). The company maintained strong asset quality with nonperforming assets at 0.35% of total loans. During 2024, CHCO repurchased 179,000 common shares at an average price of $100.24 and maintained a quarterly dividend of $0.79 per share.

City National Bank operates 97 branches across West Virginia, Kentucky, Virginia, and Ohio, with strong capitalization including tangible equity of $571 million and a tangible equity ratio of 9.1% as of December 31, 2024.

Positive

• Record net income of $117.1 million and EPS of $7.89
• Strong ROA of 1.85% and ROTCE of 21.2%
• Loan growth of 3.6% to $4.27 billion
• Deposit growth of 4.3%
• Strong capital position with tangible equity ratio of 9.1%
• Additional borrowing capacity of $1.5 billion

Negative

• Net interest margin declined from 4.01% to 3.86% year-over-year
• Increase in nonperforming assets ratio from 0.21% to 0.35%
• Higher non-interest expenses, up 2.6% to $147.2 million

Insights

Financial Analyst

City Holding Company delivered an exceptional financial performance in 2024, demonstrating resilience in a challenging banking environment. The record net income of 117.1 million represents stellar execution, particularly noteworthy given the industry-wide pressure on margins.

Key strengths emerge from the detailed analysis:

• The bank's deposit franchise strength is evident with 60.3% of assets funded by low-cost checking and savings accounts, providing a significant competitive advantage in the current rate environment.
• Asset quality metrics remain robust despite a slight uptick in nonperforming assets, with past due loans decreasing to 0.21% of total loans.
• The capital allocation strategy shows prudent balance - maintaining a strong 9.1% tangible equity ratio while returning capital through dividends and share repurchases.

However, the margin compression from 4.01% to 3.86% warrants attention. This reflects the broader industry challenge of higher funding costs, though City's superior deposit mix provides better insulation than peers. The increase in commercial real estate exposure (5.7% growth) should be monitored given potential market stress, but the bank's strong underwriting history and capital buffers provide adequate protection.

The efficiency metrics and cost control deserve recognition, with non-interest expenses increasing only 2.6% despite inflationary pressures. The 1.5 billion in additional borrowing capacity provides ample liquidity buffer, important in today's volatile banking environment.

CHARLESTON, W.Va.--(BUSINESS WIRE)-- City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.5 billion bank holding company headquartered in Charleston, West Virginia, today announced record net income of $117.1 million and record diluted earnings of $7.89 per share for the year ended December 31, 2024. For the year ended December 31, 2024, the Company achieved a return on assets of 1.85% and a return on tangible equity of 21.2%.

“For the fifth time in the last seven years, City was once again honored to be ranked #1 in customer satisfaction for consumer banking in the North Central Region in the J.D. Power 2024 U.S. Retail Banking Satisfaction Study,” said City’s President and CEO Charles Hageboeck. “We believe that this award goes further than just providing excellent service to our customers. It reflects how our employees interact and support their customers, communities, and fellow employees on a daily basis. This dedication by our employees enables us to produce excellent results year after year.

“As we start 2025, City’s strengths from a year ago remain in place. We continue to have an exceptional customer franchise, an extraordinary team, an enviable cost of funds, strong asset quality, and some competitors who seem focused on making their customers banking experiences more difficult.”

Net Interest Income

The Company’s net interest income increased from $219.2 million for the year ended December 31, 2023 to $220.2 million for the year ended December 31, 2024. The Company’s tax equivalent net interest income increased $0.8 million, or 0.4%, from $220.3 million for the year ended December 31, 2023 to $221.1 million for the year ended December 31, 2024. Due to increases in loan yields (net of loan fees and accretion) of 40 basis points and an increase in average loan balances ($185.5 million), net interest income increased $15.2 million and $10.3 million, respectively. Additionally, an increase in the yield on investment securities of 34 basis points increased net interest income by $4.7 million and a 72 basis point increase on deposits in depository institutions increased net interest income by $1.0 million. The acquisition of Citizens Commerce Bancshares, Inc., and its subsidiary, Citizens Commerce Bank (“Citizens”) of Versailles, Kentucky, during the first quarter of 2023 added $2.8 million of net interest income during the year ended December 31, 2024.

These increases were partially offset by an increase in the cost of interest bearing liabilities (78 basis points) which decreased net interest income by $25.5 million and higher balances of interest bearing liabilities ($193.8 million) that lowered net interest income by $7.9 million. The Company’s reported net interest margin decreased from 4.01% for the year ended December 31, 2023 to 3.86% for the year ended December 31, 2024.

The Company’s net interest income remained flat at $55.6 million for both the fourth quarter of 2024 and the third quarter of 2024. The Company’s tax equivalent net interest income also remained flat at $55.8 million for both the fourth quarter of 2024 and the third quarter of 2024. Due to an increase in balances of interest bearing liabilities ($133.0 million), net interest income decreased $1.2 million and a decrease in the yield on loans (17 basis points, net of loan fees and accretion), decreased net interest income $1.2 million. Additionally, lower yields on investment securities (19 basis points) lowered net interest income $0.6 million. These decreases were essentially offset by an increase in the balance of deposits in depository institution balances ($113.7 million) that increased net interest income $1.6 million and an increase in loan balances ($82.4 million) which increased net interest income $1.3 million. The Company’s reported net interest margin decreased from 3.87% for the third quarter of 2024 to 3.75% for the fourth quarter of 2024.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned increased from 0.21%, or $8.6 million, at December 31, 2023 to 0.35%, or $15.0 million at December 31, 2024. This increase is primarily due to a commercial loan for a movie theater (originated in 2014) that experienced operating weakness during the third quarter of the year ended December 31, 2024. As a result, the Company recognized a $2.0 million charge-off for this loan and moved the remaining balance to nonaccrual. Total past due loans decreased from $10.9 million, or 0.27% of total loans outstanding, at December 31, 2023 to $8.8 million, or 0.21% of total loans outstanding, at December 31, 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 $0.3 million for the fourth quarter of 2024 and a provision for credit losses of $1.8 million for the year ended December 31, 2024, compared to a $0.3 million recovery of credit losses for the fourth quarter and a provision for credit losses of $3.2 million for the year ended December 31, 2023. The provision for credit losses recognized during 2024 related primarily to the aforementioned movie theater ($2.0 million), loan growth during the year ending December 31, 2024, and an increase in the loss rate for residential real estate loans. These increases were partially offset by $1.7 million of reversals of reserves due primarily to payoffs on purchase credit deteriorated loans during the year ending December 31, 2024. Additionally, the provision for credit losses for the year ended December 31, 2023 included $2.0 million of credit loss expense associated with loans acquired from Citizens.

Non-interest Income

Non-interest income was $73.3 million for the year ended December 31, 2024, as compared to $70.6 million for the year ended December 31, 2023. In 2024, the Company reported $2.8 million of realized security losses and $0.2 million of unrealized security gains on the Company’s equity securities as compared to $4.9 million realized security losses and $0.4 million of unrealized security gains on the Company’s equity securities in 2023. The realized security losses during both 2024 and 2023, which lowered diluted earnings per share by $0.15 and $0.25, respectively, and were executed to reposition a portion of our investment securities.

Exclusive of these realized and unrealized gains and losses, non-interest income increased $0.9 million, or 1.2%, from $75.1 million for 2023 to $76.0 million for 2024. This increase was largely attributable to an increase of $1.7 million, or 17.7%, in trust and investment management fee income and an increase of $1.5 million, or 5.3%, from service charges. Additionally, bankcard revenues increased $0.5 million, or 1.9%, from the year ended December 31, 2023. These increases were partially offset by a decrease of $2.0 million from bank owned life insurance (lower death benefits) and $0.8 million in other income.

During the quarter ended December 31, 2024, non-interest income was $16.1 million as compared to $14.2 million during the quarter ended December 31, 2023. During the fourth quarter of 2024, the Company reported $2.8 million of realized security losses and $0.4 million of unrealized fair value losses on the Company’s equity securities as compared to $5.0 million of realized security losses and $0.4 million of unrealized fair value gains on the Company’s equity securities during the fourth quarter of 2023.

Exclusive of these realized and unrealized gains and losses, non-interest income increased from $18.8 million for the fourth quarter of 2023 to $19.3 million for the fourth quarter of 2024. Higher service charges of $0.5 million, or 7.3%, and trust and investment management fee income of $0.4 million, or 15.0%, were partially offset by lower death benefits from bank owned life insurance of $0.4 million.

Non-interest Expenses

Non-interest expenses increased $3.7 million, or 2.6%, from $143.5 million for 2023 to $147.2 million for 2024. This increase was primarily due to an increase in salaries and employee benefit expenses ($3.2 million due to salary adjustments (4.1%) and increased health insurance (5.0%)) and equipment and software related expense ($1.5 million). In addition, bankcard expense increased $1.1 million and advertising expenses increased $0.7 million. These expenses were partially offset by lower other expenses of $2.9 million which were primarily related to acquisition and integration expenses associated with the Citizens acquisition completed in 2023 ($5.2 million).

In the fourth quarter of 2024, non-interest expenses increased $1.8 million (5.2%) from $35.1 million in the fourth quarter of 2023 to $36.9 million. This increase was largely due to an increase in equipment and software related expense of $0.9 million and salaries and employee benefits of $0.7 million. In addition, advertising expenses increased $0.3 million.

Balance Sheet Trends

Loans increased $148.9 million (3.6%) from December 31, 2023 to $4.27 billion at December 31, 2024. Commercial real estate loans increased $95.2 million (5.7%); residential real estate loans increased $35.5 million (2.0%); and home equity loans increased $32.0 million (19.1%). These increases were partially offset by decreases in consumer loans ($7.4 million) and commercial and industrial loans ($7.1 million).

Period-end deposit balances increased $209.9 million, or 4.3%, from December 31, 2023, to December 31, 2024. Average depository balances for the year ended December 31, 2024 increased $59.2 million from the year ended December 31, 2023 to $5.04 billion. Average time deposits increased $180.4 million and average interest bearing demand deposits increased $32.3 million. These increases were partially offset by a decrease in average savings deposits of $100.8 million and a decrease in noninterest bearing demand deposits of $52.7 million. The cost of interest bearing liabilities for the Company for the quarter ending December 31, 2024 were as follows: interest bearing demand deposits – 115 basis points; savings deposits – 73 basis points; and time deposits – 367 basis points.

Income Tax Expense

The Company’s effective income tax rates for the quarter and year ended December 31, 2024 were 16.9% and 19.0%, respectively, compared to 19.5% and 20.1% for the comparable periods in 2023.

Capitalization and Liquidity

The Company’s gross loan to deposit ratio was 83.1% and its gross loan to asset ratio was 66.2% at December 31, 2024. The Company maintained investment securities totaling 22.5% of assets as of the same date. The Company’s deposit mix is weighted toward checking and saving accounts that fund 60.3% of total assets at December 31, 2024. Time deposits fund 19.3% of total assets at December 31, 2024, with only 14.7% 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 December 31, 2024, City National had the capacity to borrow an additional $1.5 billion from these existing borrowing facilities. In addition, approximately $695 million of City National’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $755 million of City National’s investment securities unpledged at December 31, 2024.

The Company continues to be strongly capitalized with tangible equity of $571 million at December 31, 2024. The Company’s tangible equity ratio increased from 8.6% at December 31, 2023 to 9.1% at December 31, 2024. This increase was attributable to the Company’s net income for 2024 less dividends.

At December 31, 2024, City National’s Leverage Ratio was 8.7%, its Common Equity Tier I ratio was 13.6%, its Tier I Capital ratio was 13.6%, and its Total Risk-Based Capital ratio was 14.1%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On November 20, 2024, the Company’s Board of Directors approved a quarterly cash dividend of $0.79 cents per share payable January 31, 2025, to shareholders of record as of January 15, 2025. During the year ended December 31, 2024, the Company repurchased 179,000 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 December 31, 2024, the Company could repurchase an additional approximately 821,000 shares under the current plan. As a result of lower share repurchases in 2024, City Holding Company had a cash balance of $117 million at December 31, 2024 and annual expenditures are approximately $45 million (based on the Company’s operating expenses, contractual obligations and current quarterly dividend ($0.79 per share).

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 December 31, 2024 Form 10-K. The Company will continue to evaluate the impact of any subsequent events on the preliminary December 31, 2024 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
	Three Months Ended																Twelve Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023				December 31, 2024			December 31, 2023
Earnings
Net Interest Income (fully taxable equivalent)	$	55,790		$	55,823		$	54,847		$	54,647		$	54,889			$	221,108		$	220,266
Net Income available to common shareholders		28,654			29,809			29,115			29,523			27,452				117,101			114,365
Per Share Data
Earnings per share available to common shareholders:
Basic	$	1.94		$	2.02		$	1.96		$	1.98		$	1.84			$	7.91		$	7.62
Diluted		1.94			2.02			1.96			1.97			1.84				7.89			7.61
Weighted average number of shares (in thousands):
Basic		14,634			14,633			14,695			14,795			14,758				14,676			14,868
Diluted		14,655			14,654			14,710			14,819			14,785				14,697			14,891
Period-end number of shares (in thousands)		14,705			14,702			14,701			14,825			14,832				14,705			14,832
Cash dividends declared	$	0.79		$	0.79		$	0.72		$	0.72		$	0.72			$	3.01		$	2.73
Book value per share (period-end)	$	49.69		$	50.42		$	46.71		$	46.02		$	45.65			$	49.69		$	45.65
Tangible book value per share (period-end)		38.80			39.49			35.75			35.10			34.69				38.80			34.69
Market data:
High closing price	$	134.35		$	123.29		$	106.43		$	111.40		$	115.77			$	134.35		$	115.77
Low closing price		113.37			104.53			98.35			99.28			87.43				98.35			83.57
Period-end closing price		118.48			117.39			106.25			104.22			110.26				118.48			110.26
Average daily volume (in thousands)		53			56			57			63			62				57			72
Treasury share activity:
Treasury shares repurchased (in thousands)		-			-			142			36			70				179			667
Average treasury share repurchase price	$	-		$	-		$	100.24		$	100.24		$	90.61			$	100.24		$	90.21
Key Ratios (percent)
Return on average assets		1.75	%		1.87	%		1.85	%		1.92	%		1.78	%			1.85	%		1.87	%
Return on average tangible equity		19.4	%		20.9	%		22.2	%		22.7	%		23.5	%			21.2	%		23.8	%
Yield on interest earning assets		5.31	%		5.43	%		5.38	%		5.33	%		5.23	%			5.36	%		4.96	%
Cost of interest bearing liabilities		2.14	%		2.13	%		2.06	%		1.90	%		1.70	%			2.06	%		1.32	%
Net Interest Margin		3.75	%		3.87	%		3.87	%		3.95	%		3.98	%			3.86	%		4.01	%
Non-interest income as a percent of total revenue		25.8	%		26.5	%		25.3	%		25.0	%		25.6	%			25.7	%		25.6	%
Efficiency Ratio		48.4	%		48.8	%		49.3	%		48.5	%		47.4	%			48.8	%		46.0	%
Price/Earnings Ratio (a)		15.27			14.54			13.53			13.17			14.95				14.99			14.47
Capital (period-end)
Average Shareholders' Equity to Average Assets		11.46	%		11.45	%		10.90	%		11.09	%		10.27	%
Tangible equity to tangible assets		9.06	%		9.26	%		8.50	%		8.46	%		8.57	%
Consolidated City Holding Company risk based capital ratios (b):
CET I		16.51	%		16.64	%		16.10	%		16.15	%		15.70	%
Tier I		16.51	%		16.64	%		16.10	%		16.15	%		15.70	%
Total		17.02	%		17.17	%		16.64	%		16.69	%		16.23	%
Leverage		10.62	%		10.59	%		10.30	%		10.45	%		10.23	%
City National Bank risk based capital ratios (b):
CET I		13.55	%		16.00	%		15.17	%		14.60	%		13.79	%
Tier I		13.55	%		16.00	%		15.17	%		14.60	%		13.79	%
Total		14.05	%		16.52	%		15.72	%		15.14	%		14.32	%
Leverage		8.72	%		10.17	%		9.68	%		9.42	%		8.94	%
Other (period-end)
Branches		97			97			97			97			98
FTE		941			940			948			953			957
Assets per FTE (in thousands)	$	6,864		$	6,845		$	6,689		$	6,625		$	6,447
Deposits per FTE (in thousands)		5,467			5,428			5,345			5,304			5,157
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) December 31, 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															Twelve Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024		March 31, 2024			December 31, 2023				December 31, 2024			December 31, 2023
Interest Income
Interest and fees on loans	$	61,701		$	61,407		$	59,285	$	59,128		$	57,755			$	241,521		$	212,693
Interest on investment securities:
Taxable		13,742			14,403			13,947		12,040			12,336				54,132			48,335
Tax-exempt		789			824			838		830			832				3,281			3,854
Interest on deposits in depository institutions		2,588			1,417			1,920		1,570			941				7,495			6,382
Total Interest Income		78,820			78,051			75,990		73,568			71,864				306,429			271,264
Interest Expense
Interest on deposits		17,463			17,072			15,897		14,097			12,479				64,529			37,287
Interest on short-term borrowings		4,191			3,788			3,900		3,621			3,693				15,500			12,027
Interest on FHLB long-term advances		1,586			1,586			1,568		1,423			1,026				6,163			2,709
Total Interest Expense		23,240			22,446			21,365		19,141			17,198				86,192			52,023
Net Interest Income		55,580			55,605			54,625		54,427			54,666				220,237			219,241
Provision for (Recovery of) credit losses		300			1,200			500		(180	)		(300	)			1,820			3,243
Net Interest Income After Provision for (Recovery of) Credit Losses		55,280			54,405			54,125		54,607			54,966				218,417			215,998
Non-Interest Income
Net losses on sale of investment securities		(2,812	)		(12	)		-		(1	)		(4,951	)			(2,825	)		(4,908	)
Unrealized (losses) gains recognized on equity securities still held		(390	)		353			364		(152	)		365				175			432
Service charges		7,679			7,531			6,980		7,035			7,158				29,225			27,751
Bankcard revenue		7,109			7,346			7,245		6,800			7,109				28,500			27,960
Trust and investment management fee income		2,947			2,923			2,762		2,623			2,563				11,255			9,563
Bank owned life insurance		855			1,435			775		927			1,218				3,992			6,037
Other income		739			772			785		716			774				3,012			3,794
Total Non-Interest Income		16,127			20,348			18,911		17,948			14,236				73,334			70,629
Non-Interest Expense
Salaries and employee benefits		19,489			19,245			18,751		18,878			18,772				76,363			73,163
Occupancy related expense		2,696			2,774			2,856		2,840			2,917				11,166			11,318
Equipment and software related expense		3,683			3,431			3,130		2,929			2,824				13,173			11,629
FDIC insurance expense		729			734			718		711			868				2,892			2,922
Advertising		901			1,081			972		867			588				3,821			3,112
Bankcard expenses		1,909			2,271			2,290		2,039			2,014				8,509			7,447
Postage, delivery, and statement mailings		684			666			714		666			615				2,730			2,526
Office supplies		444			480			432		453			477				1,809			1,945
Legal and professional fees		629			500			551		482			478				2,162			2,035
Telecommunications		510			578			624		600			614				2,312			2,411
Repossessed asset (gains) losses, net of expenses		(10	)		21			6		229			(50	)			246			28
Other expenses		5,261			5,857			5,728		5,206			4,992				22,052			24,985
Total Non-Interest Expense		36,925			37,638			36,772		35,900			35,109				147,235			143,521
Income Before Income Taxes		34,482			37,115			36,264		36,655			34,093				144,516			143,106
Income tax expense		5,828			7,306			7,149		7,132			6,641				27,415			28,741
Net Income Available to Common Shareholders	$	28,654		$	29,809		$	29,115	$	29,523		$	27,452			$	117,101		$	114,365
Distributed earnings allocated to common shareholders	$	11,511		$	11,506		$	10,418	$	10,505		$	10,508			$	43,857		$	40,121
Undistributed earnings allocated to common shareholders		16,881			18,025			18,439		18,757			16,696				72,175			73,208
Net earnings allocated to common shareholders	$	28,392		$	29,531		$	28,857	$	29,262		$	27,204			$	116,032		$	113,329
Average common shares outstanding		14,634			14,633			14,695		14,795			14,758				14,676			14,868
Shares for diluted earnings per share		14,655			14,654			14,710		14,819			14,785				14,697			14,891
Basic earnings per common share	$	1.94		$	2.02		$	1.96	$	1.98		$	1.84			$	7.91		$	7.62
Diluted earnings per common share	$	1.94		$	2.02		$	1.96	$	1.97		$	1.84			$	7.89		$	7.61

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
				(Unaudited)			(Unaudited)			(Unaudited)
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Assets
Cash and due from banks	$	117,580		$	161,333		$	141,168		$	121,853		$	123,033
Interest-bearing deposits in depository institutions		107,809			132,616			76,818			196,829			33,243
Cash and cash equivalents		225,389			293,949			217,986			318,682			156,276
Investment securities available-for-sale, at fair value		1,421,306			1,462,795			1,456,685			1,347,657			1,338,137
Other securities		29,803			30,859			31,237			30,681			30,966
Total investment securities		1,451,109			1,493,654			1,487,922			1,378,338			1,369,103
Gross loans		4,274,776			4,157,830			4,112,873			4,091,788			4,125,923
Allowance for credit losses		(21,922	)		(21,832	)		(22,688	)		(22,310	)		(22,745	)
Net loans		4,252,854			4,135,998			4,090,185			4,069,478			4,103,178
Bank owned life insurance		120,887			120,061			119,650			118,875			118,122
Premises and equipment, net		70,539			70,651			71,041			71,623			72,146
Accrued interest receivable		20,650			21,785			21,826			21,759			20,290
Net deferred tax assets		41,704			33,497			43,602			43,969			42,216
Goodwill and intangible assets		160,044			160,640			161,236			161,832			162,568
Other assets		116,283			104,079			127,947			129,627			124,153
Total Assets	$	6,459,459		$	6,434,314		$	6,341,395		$	6,314,183		$	6,168,052
Liabilities
Deposits:
Noninterest-bearing	$	1,344,449		$	1,339,538		$	1,354,660		$	1,359,072		$	1,342,804
Interest-bearing:
Demand deposits		1,335,220			1,351,239			1,333,169			1,330,268			1,291,011
Savings deposits		1,215,358			1,208,828			1,233,834			1,266,211			1,259,457
Time deposits		1,249,123			1,203,046			1,145,617			1,100,250			1,040,990
Total deposits		5,144,150			5,102,651			5,067,280			5,055,801			4,934,262
Short-term borrowings
FHLB short-term advances		-			-			-			-			25,000
Customer repurchase agreements		325,655			339,153			322,668			304,941			309,856
FHLB long-term advances		150,000			150,000			150,000			150,000			100,000
Other liabilities		108,990			101,211			114,707			121,210			121,868
Total Liabilities		5,728,795			5,693,015			5,654,655			5,631,952			5,490,986
Stockholders' Equity
Preferred stock		-			-			-			-			-
Common stock		47,619			47,619			47,619			47,619			47,619
Capital surplus		176,506			175,602			174,834			175,747			177,424
Retained earnings		852,757			835,778			817,549			799,024			780,299
Cost of common stock in treasury		(230,499	)		(230,836	)		(230,944	)		(218,555	)		(217,737	)
Accumulated other comprehensive loss:
Unrealized loss on securities available-for-sale		(114,277	)		(84,283	)		(119,737	)		(119,023	)		(107,958	)
Underfunded pension liability		(1,442	)		(2,581	)		(2,581	)		(2,581	)		(2,581	)
Total Accumulated Other Comprehensive Loss		(115,719	)		(86,864	)		(122,318	)		(121,604	)		(110,539	)
Total Stockholders' Equity		730,664			741,299			686,740			682,231			677,066
Total Liabilities and Stockholders' Equity	$	6,459,459		$	6,434,314		$	6,341,395		$	6,314,183		$	6,168,052
Regulatory Capital
Total CET 1 capital	$	688,707		$	669,862		$	650,108		$	644,235		$	627,579
Total tier 1 capital		688,707			669,862			650,108			644,235			627,579
Total risk-based capital		709,820			690,857			671,959			665,707			648,646
Total risk-weighted assets		4,171,271			4,024,686			4,037,614			3,989,171			3,996,688

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Commercial and industrial	$	419,838	$	424,414	$	408,312	$	407,770	$	426,950
1-4 Family		197,258		194,670		195,992		202,378		206,237
Hotels		389,660		383,232		370,954		354,929		357,142
Multi-family		240,943		193,875		190,390		186,555		189,165
Non Residential Non-Owner Occupied		707,265		665,210		668,330		682,609		680,590
Non Residential Owner Occupied		233,497		236,826		235,993		232,440		240,328
Commercial real estate (1)		1,768,623		1,673,813		1,661,659		1,658,911		1,673,462
Residential real estate (2)		1,823,610		1,806,578		1,797,260		1,786,764		1,788,150
Home equity		199,192		190,149		179,607		171,292		167,201
Consumer		57,816		58,710		62,352		63,556		65,246
DDA overdrafts		5,697		4,166		3,683		3,495		4,914
Gross Loans	$	4,274,776	$	4,157,830	$	4,112,873	$	4,091,788	$	4,125,923
Construction loans included in:
(1) - Commercial real estate loans	$	24,681	$	2,736	$	2,233	$	6,651	$	2,459
(2) - Residential real estate loans		7,547		7,604		9,766		19,709		23,066

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
	Three Months Ended																Twelve Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023				December 31, 2024			December 31, 2023
Allowance for Credit Losses
Balance at beginning of period	$	21,832		$	22,688		$	22,310		$	22,745		$	23,128			$	22,745		$	17,108
Charge-offs:
Commercial and industrial		(99	)		(206	)		(61	)		(306	)		(84	)			(672	)		(153	)
Commercial real estate		-			(1,909	)		(40	)		(31	)		(5	)			(1,980	)		(381	)
Residential real estate		(75	)		(43	)		(286	)		(19	)		(68	)			(423	)		(208	)
Home equity		(23	)		(57	)		(121	)		(27	)		(21	)			(228	)		(400	)
Consumer		(23	)		(24	)		(20	)		(115	)		(6	)			(182	)		(187	)
DDA overdrafts		(405	)		(436	)		(373	)		(356	)		(416	)			(1,570	)		(1,645	)
Total charge-offs		(625	)		(2,675	)		(901	)		(854	)		(600	)			(5,055	)		(2,974	)
Recoveries:
Commercial and industrial		1			24			38			25			70				88			836
Commercial real estate		12			193			165			11			17				381			277
Residential real estate		3			27			179			49			4				258			47
Home equity		17			13			38			9			13				77			47
Consumer		15			25			24			98			45				162			123
DDA overdrafts		367			337			335			407			368				1,446			1,402
Total recoveries		415			619			779			599			517				2,412			2,732
Net charge-offs		(210	)		(2,056	)		(122	)		(255	)		(83	)			(2,643	)		(242	)
Provision for (Recovery of) credit losses		300			1,200			500			(180	)		(300	)			1,820			3,243
PCD Loan Reserves		-			-			-			-			-				-			2,811
Adoption of ASU 2022-02		-			-			-			-			-				-			(175	)
Balance at end of period	$	21,922		$	21,832		$	22,688		$	22,310		$	22,745			$	21,922		$	22,745
Loans outstanding	$	4,274,776		$	4,157,830		$	4,112,873		$	4,091,788		$	4,125,923
Allowance as a percent of loans outstanding		0.51	%		0.53	%		0.55	%		0.55	%		0.55	%
Allowance as a percent of non-performing loans		154.3	%		141.1	%		236.8	%		206.8	%		290.6	%
Average loans outstanding	$	4,215,962		$	4,133,520		$	4,092,464		$	4,092,529		$	4,045,889			$	4,133,843		$	3,900,913
Net charge-offs (annualized) as a percent of average loans outstanding		0.02	%		0.20	%		0.01	%		0.02	%		0.01	%			0.06	%		0.01	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Nonaccrual Loans
Residential real estate	$	2,823		$	2,596		$	3,214		$	3,452		$	2,849
Home equity		212			109			63			121			111
Commercial and industrial		3,161			3,631			3,135			3,405			2,211
Commercial real estate		7,833			9,031			3,118			3,807			2,387
Consumer		-			-			-			1			-
Total nonaccrual loans		14,029			15,367			9,530			10,786			7,558
Accruing loans past due 90 days or more		182			102			50			-			270
Total non-performing loans		14,211			15,469			9,580			10,786			7,828
Other real estate owned		754			729			629			752			731
Total non-performing assets	$	14,965		$	16,198		$	10,209		$	11,538		$	8,559
Non-performing assets as a percent of loans and other real estate owned		0.35	%		0.39	%		0.25	%		0.28	%		0.21	%
Past Due Loans
Residential real estate	$	7,012		$	8,205		$	7,991		$	5,035		$	8,059
Home equity		902			1,571			819			1,028			1,235
Commercial and industrial		-			57			1,087			26			435
Commercial real estate		240			992			565			138			715
Consumer		273			161			97			75			129
DDA overdrafts		391			333			327			406			364
Total past due loans	$	8,818		$	11,319		$	10,886		$	6,708		$	10,937
Total past due loans as a percent of loans outstanding		0.21	%		0.27	%		0.26	%		0.16	%		0.27	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
	Three Months Ended
	December 31, 2024							September 30, 2024							December 31, 2023
	Average					Yield/		Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio (1):
Residential real estate (2)	$	2,010,476		$	25,835	5.11	%	$	1,984,502		$	25,654	5.14	%	$	1,945,185		$	23,673	4.83	%
Commercial, financial, and agriculture (2)		2,141,481			34,859	6.48	%		2,082,888			34,708	6.63	%		2,031,089			33,038	6.45	%
Installment loans to individuals (2), (3)		64,005			1,007	6.26	%		66,130			1,045	6.29	%		69,615			1,046	5.96	%
Total loans		4,215,962			61,701	5.82	%		4,133,520			61,407	5.91	%		4,045,889			57,757	5.66	%
Securities:
Taxable		1,334,368			13,742	4.10	%		1,343,323			14,402	4.27	%		1,194,448			12,336	4.10	%
Tax-exempt (4)		154,097			999	2.58	%		159,225			1,043	2.61	%		153,204			1,053	2.73	%
Total securities		1,488,465			14,741	3.94	%		1,502,548			15,445	4.09	%		1,347,652			13,389	3.94	%
Deposits in depository institutions		217,056			2,588	4.74	%		103,322			1,417	5.46	%		71,624			941	5.21	%
Total interest-earning assets		5,921,483			79,030	5.31	%		5,739,390			78,269	5.43	%		5,465,165			72,087	5.23	%
Cash and due from banks		105,485							110,765							87,633
Premises and equipment, net		70,759							70,998							72,435
Goodwill and intangible assets		160,413							161,009							163,220
Other assets		282,298							292,758							342,669
Less: Allowance for credit losses		(22,178	)						(23,205	)						(23,532	)
Total assets	$	6,518,260						$	6,351,715						$	6,107,590
Liabilities:
Interest-bearing demand deposits	$	1,367,370		$	3,951	1.15	%	$	1,321,922		$	4,100	1.23	%	$	1,299,683		$	3,467	1.06	%
Savings deposits		1,204,625			2,212	0.73	%		1,220,009			2,200	0.72	%		1,274,726			2,369	0.74	%
Time deposits (2)		1,225,654			11,300	3.67	%		1,174,217			10,772	3.65	%		1,025,870			6,644	2.57	%
Short-term borrowings		375,304			4,191	4.44	%		323,844			3,788	4.65	%		312,941			3,693	4.68	%
FHLB long-term advances		150,000			1,586	4.21	%		150,000			1,586	4.21	%		100,000			1,026	4.07	%
Total interest-bearing liabilities		4,322,953			23,240	2.14	%		4,189,992			22,446	2.13	%		4,013,220			17,199	1.70	%
Noninterest-bearing demand deposits		1,347,457							1,334,762							1,334,021
Other liabilities		100,707							99,797							132,862
Stockholders' equity		747,143							727,164							627,487
Total liabilities and
stockholders' equity	$	6,518,260						$	6,351,715						$	6,107,590
Net interest income				$	55,790						$	55,823						$	54,888
Net yield on earning assets						3.75	%						3.87	%						3.98	%
(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				$	175						$	127						$	201
(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				$	57						$	27						$	78
Commercial, financial, and agriculture					802							752							702
Installment loans to individuals					4							5							26
Time deposits					12							14							131
				$	875						$	798						$	937
(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)
	Twelve Months Ended
	December 31, 2024							December 31, 2023
	Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio (1):
Residential real estate (2)	$	1,978,804		$	100,401	5.07	%	$	1,899,239		$	88,083	4.64	%
Commercial, financial, and agriculture (2)		2,088,474			137,071	6.56	%		1,935,038			120,783	6.24	%
Installment loans to individuals (2), (3)		66,565			4,048	6.08	%		66,636			3,828	5.74	%
Total loans		4,133,843			241,520	5.84	%		3,900,913			212,694	5.45	%
Securities:
Taxable		1,295,289			54,132	4.18	%		1,273,674			48,335	3.79	%
Tax-exempt (4)		158,257			4,153	2.62	%		175,383			4,878	2.78	%
Total securities		1,453,546			58,285	4.01	%		1,449,057			53,213	3.67	%
Deposits in depository institutions		144,134			7,495	5.20	%		142,299			6,382	4.48	%
Total interest-earning assets		5,731,523			307,300	5.36	%		5,492,269			272,289	4.96	%
Cash and due from banks		104,575							74,443
Premises and equipment, net		71,298							72,582
Goodwill and intangible assets		161,318							153,937
Other assets		299,378							329,198
Less: Allowance for credit losses		(22,804	)						(22,089	)
Total assets	$	6,345,288						$	6,100,340
Liabilities:
Interest-bearing demand deposits	$	1,323,507		$	15,335	1.16	%	$	1,291,234		$	11,048	0.86	%
Savings deposits		1,231,698			8,917	0.72	%		1,332,527			7,979	0.60	%
Time deposits (2)		1,149,773			40,277	3.50	%		969,329			18,260	1.88	%
Short-term borrowings		337,368			15,500	4.59	%		290,440			12,027	4.14	%
FHLB long-term advances		146,721			6,163	4.20	%		66,849			2,709	4.05	%
Total interest-bearing liabilities		4,189,067			86,192	2.06	%		3,950,379			52,023	1.32	%
Noninterest-bearing demand deposits		1,336,625							1,389,295
Other liabilities		107,061							125,377
Stockholders' equity		712,535							635,289
Total liabilities and
stockholders' equity	$	6,345,288						$	6,100,340
Net interest income				$	221,108						$	220,266
Net yield on earning assets						3.86	%						4.01	%

(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		$	494			$	1,366
(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		$	202			$	243
Commercial, financial, and agriculture			3,301				2,276
Installment loans to individuals			21				41
Time deposits			110				535
		$	3,634			$	3,095
(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																Twelve Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023				December 31, 2024		December 31, 2023
Net Interest Income/Margin
Net interest income ("GAAP")	$	55,580		$	55,605		$	54,625		$	54,427		$	54,666			$	220,237	$	219,241
Taxable equivalent adjustment		210			218			222			220			223				871		1,025
Net interest income, fully taxable equivalent	$	55,790		$	55,823		$	54,847		$	54,647		$	54,889			$	221,108	$	220,266
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")		11.31	%		11.52	%		10.83	%		10.81	%		10.98	%
Effect of goodwill and other intangibles, net		(2.25	)%		(2.26	)%		(2.33	)%		(2.35	)%		(2.41	)%
Tangible common equity to tangible assets		9.06	%		9.26	%		8.50	%		8.46	%		8.57	%

Commercial Loan Information (period end)
Commercial Sector	Total		% of Total Loans			Average DSC	Average LTV
Natural Gas Extraction	$	26,966		0.63	%	3.71	NA
Natural Gas Distribution		23,495		0.55	%	5.46	NA
Masonry Contractors		25,197		0.59	%	1.04	84%
Sheet Metal Work Manufacturing		26,422		0.62	%	1.22	68%
Beer & Ale Merchant Wholesalers		26,565		0.62	%	3.28	NA
Gasoline Stations with Convenience Stores		39,009		0.91	%	4.76	65%
Lessors of Residential Buildings & Dwellings		494,952		11.60	%	1.89	66%
1-4 Family		185,720		4.35	%	2.97	67%
Multi-Family		224,401		5.26	%	1.84	64%
Lessors of Nonresidential Buildings		593,179		13.90	%	1.70	65%
Office Buildings		133,513		3.13	%	1.64	62%
Lessors of Mini-Warehouses & Self-Storage Units		55,980		1.31	%	1.43	61%
Assisted Living Facilities		26,169		0.61	%	1.38	61%
Hotels & Motels		390,075		9.14	%	1.45	63%
	Average Balance		Median Balance
Commercial, Financial, and Agriculture Loans	$	476	$	97
Commercial Real Estate Loans		549		127

CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued
(Unaudited) ($ in 000s, except per share data)
Estimated Uninsured Deposits by Deposit Type
	December 31, 2024	September 30, 2024
Noninterest-Bearing Demand Deposits	17%	18%
Interest-Bearing Deposits
Demand Deposits	15%	16%
Savings Deposits	12%	12%
Time Deposits	16%	16%
Total Deposits	15%	15%
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	32,238	4,497	1.8%
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/20250121464243/en/

For Further Information Contact:

David L. Bumgarner, Executive Vice President and Chief Financial Officer

(304) 769-1169

Source: City Holding Company

FAQ

What was City Holding Company's (CHCO) net income for 2024?

City Holding Company reported record net income of $117.1 million for the year ended December 31, 2024.

How much did CHCO's loan portfolio grow in 2024?

CHCO's loan portfolio increased by $148.9 million (3.6%) to $4.27 billion at December 31, 2024.

What was CHCO's dividend per share in Q4 2024?

CHCO declared a quarterly cash dividend of $0.79 per share payable January 31, 2025.

How many shares did CHCO repurchase in 2024?

CHCO repurchased 179,000 common shares at a weighted average price of $100.24 per share during 2024.

What was CHCO's net interest margin in 2024?

CHCO's net interest margin decreased from 4.01% in 2023 to 3.86% in 2024.