City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.4
billion bank holding company headquartered in Charleston, West
Virginia, today announced quarterly net income of $29.8 million and
diluted earnings of $2.02 per share for the quarter ended September
30, 2024. In the third quarter of 2024, the Company achieved a
return on assets of 1.87% and a return on tangible equity of
20.9%.
Net Interest Income
The Company’s net interest income increased approximately $1.0
million, or 1.8%, from $54.6 million during the second quarter of
2024 to $55.6 million during the third quarter of 2024. The
Company’s tax equivalent net interest income increased $1.0
million, or 1.8%, from $54.8 million for the second quarter of 2024
to $55.8 million for the third quarter of 2024. Due to an increase
in the yield on loans (7 basis points) and an increase in average
loans outstanding ($41.1 million), net interest income increased
$1.4 million and $0.6 million, respectively. In addition, net
interest income increased $0.4 million due to an increase in the
average investment balances ($41.5 million). These increases were
partially offset by an increase in the cost of interest bearing
liabilities (7 basis points) which decreased net interest income by
$0.8 million, and lower average deposits in depository institutions
balances ($36.5 million) that lowered net interest income by $0.5
million. The Company’s reported net interest margin remained steady
at 3.87% for both the second and third quarters of 2024.
Credit Quality
The Company’s ratio of nonperforming assets to total loans and
other real estate owned increased from 0.25%, or $10.2 million, at
June 30, 2024 to 0.39%, or $16.2 million, at September 30, 2024.
Total past due loans increased slightly from $10.9 million, or
0.26% of total loans outstanding, at June 30, 2024, to $11.3
million, or 0.27% of total loans outstanding at September 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 $1.2 million in the third quarter of
2024, compared to a provision for credit losses of $0.2 million for
the comparable period in 2023, and a provision for credit losses of
$0.5 million for the second quarter of 2024. The provision for
credit losses in the third quarter was primarily related to a
commercial loan for a movie theater that had been originated in
September 2014. The loan had paid according to terms but cash flows
began deteriorating during the COVID-19 crisis which began in 2020.
Due to further operating weaknesses during 2024, the loan was
transferred to nonaccrual status and a $2.0 million charge-off was
recorded in the quarter ending September 30, 2024, leaving an
outstanding balance of approximately $6.7 million. The Company has
only one other loan to a movie theater and the outstanding balance
of that performing loan is under $5.0 million. This charge-off was
partially offset by a $0.75 million reversal of a reserve on a
purchase credit deteriorated loan that was paid-off in full during
the quarter ended September 30, 2024.
Non-interest Income
Non-interest income was $20.3 million during the quarter ended
September 30, 2024, as compared to $17.4 million during the quarter
ended September 30, 2023. During the third quarter of 2024, the
Company reported $0.4 million of unrealized fair value gains on the
Company’s equity securities, as compared to $0.7 million of
realized security losses during the third quarter of 2023.
Exclusive of these items, non-interest income increased $1.9
million, or 10.3%, from $18.1 million for the third quarter of 2023
to $20.0 million for the third quarter of 2024. This increase was
attributable to an increase of $0.6 million (77.8%) in bank owned
life insurance (due to death benefit proceeds), an increase of $0.5
million (21.3%) in trust and investment management fee income, an
increase of $0.4 million (5.7%) in service fees, and an increase of
$0.3 million (4.1%) in bankcard revenues.
Non-interest Expenses
Non-interest expenses increased $2.6 million, or 7.5%, from
$35.0 million in the third quarter of 2023 to $37.6 million in the
third quarter of 2024. This increase was largely due to an increase
in other expenses of $1.1 million and an increase in salaries and
employee benefits of $1.0 million. In addition, equipment and
software related expenses increased $0.6 million and advertising
expenses increased $0.3 million.
Balance Sheet Trends
Gross loans increased $45.0 million (1.1%) from June 30, 2024 to
$4.16 billion at September 30, 2024. Commercial and industrial
loans increased $16.1 million (3.9%), commercial real estate loans
increased $12.2 million (0.7%), home equity loans increased $10.5
million (5.9%), and residential real estate loans increased $9.3
million (0.5%) during the quarter ended September 30, 2024.
Period-end deposit balances increased $35.4 million, 0.7% from
June 30, 2024, to September 30, 2024. Total average depository
balances increased $15.5 million, or 0.3%, from the quarter ended
June 30, 2024 to the quarter ended September 30, 2024. Average time
deposit balances increased $49.2 million and were partially offset
by decreases in average savings deposit balances of $28.3 million
and decreases in average noninterest-bearing demand deposit
balances of $6.9 million.
Income Tax Expense
The Company’s effective income tax rate for the third quarter of
2024 was 19.7% compared to 20.1% for the year ended December 31,
2023 and 21.1% for the quarter ended September 30, 2023.
Capitalization and Liquidity
The Company’s gross loan to deposit ratio was 81.5% and its
gross loan to asset ratio was 64.6% at September 30, 2024. The
Company maintained investment securities totaling 23.2% of assets
as of the same date. The Company’s deposit mix is weighted heavily
toward checking and saving accounts, which fund 60.6% of assets at
September 30, 2024. Time deposits fund 18.7% of assets at September
30, 2024, with only 14.4% 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 September 30, 2024, City National had the capacity to
borrow an additional $1.6 billion from these existing borrowing
facilities. In addition, approximately $765 million of City
National’s investment securities were pledged to collateralize
customer repurchase agreements and various deposit accounts,
leaving approximately $730 million of City National’s investment
securities unpledged at September 30, 2024.
The Company continues to be strongly capitalized with tangible
equity of $581 million at September 30, 2024. The Company’s
tangible equity ratio increased from 8.6% at December 31, 2023 to
9.3% at September 30, 2024. At September 30, 2024, City National’s
Leverage Ratio was 10.2%, its Common Equity Tier I ratio was 16.0%,
its Tier I Capital ratio was 16.0%, and its Total Risk-Based
Capital ratio was 16.5%. These regulatory capital ratios are
significantly above levels required to be considered “well
capitalized,” which is the highest possible regulatory
designation.
On September 25, 2024, the Board of Directors of the Company
approved a quarterly cash dividend of $0.79 per share payable
October 31, 2024, to shareholders of record as of October 15, 2023.
This represents a 10.0% increase from the $0.715 per share dividend
paid on July 31, 2024.
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 September 30, 2024 Form 10-Q. The
Company will continue to evaluate the impact of any subsequent
events on the preliminary September 30, 2024 results and will
adjust the amounts if necessary.
CITY HOLDING COMPANY AND SUBSIDIARIES Financial
Highlights (Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2024 June 30, 2024 March 31,
2024 December 31, 2023 September 30, 2023
September 30, 2024 September 30, 2023
Earnings Net Interest Income (fully taxable equivalent)
$
55,823
$
54,847
$
54,647
$
54,889
$
55,855
$
165,318
$
165,379
Net Income available to common shareholders
29,809
29,115
29,523
27,452
29,839
88,447
86,913
Per Share Data Earnings per share available to common
shareholders: Basic
$
2.02
$
1.96
$
1.98
$
1.84
$
1.98
$
5.96
$
5.78
Diluted
2.02
1.96
1.97
1.84
1.98
5.96
5.77
Weighted average number of shares (in thousands): Basic
14,633
14,695
14,795
14,758
14,922
14,691
14,906
Diluted
14,654
14,710
14,819
14,785
14,945
14,711
14,928
Period-end number of shares (in thousands)
14,702
14,701
14,825
14,832
14,901
14,702
14,901
Cash dividends declared
$
0.79
$
0.72
$
0.72
$
0.72
$
0.72
$
2.22
$
2.02
Book value per share (period-end)
$
50.42
$
46.71
$
46.02
$
45.65
$
40.94
$
50.42
$
40.94
Tangible book value per share (period-end)
39.49
35.75
35.10
34.69
29.98
39.49
29.98
Market data: High closing price
$
123.29
$
106.43
$
111.40
$
115.77
$
99.49
$
123.29
$
100.27
Low closing price
104.53
98.35
99.28
87.43
87.51
98.35
83.57
Period-end closing price
117.39
106.25
104.22
110.26
90.35
117.39
90.35
Average daily volume (in thousands)
56
57
63
62
62
59
76
Treasury share activity: Treasury shares repurchased (in thousands)
-
142
36
70
109
179
597
Average treasury share repurchase price
$
-
$
100.24
$
100.24
$
90.61
$
89.33
$
100.24
$
90.16
Key Ratios (percent) Return on average assets
1.87
%
1.85
%
1.92
%
1.78
%
1.94
%
1.88
%
1.91
%
Return on average tangible equity
20.9
%
22.2
%
22.7
%
23.5
%
24.1
%
21.9
%
23.9
%
Yield on interest earning assets
5.43
%
5.38
%
5.33
%
5.23
%
5.08
%
5.38
%
4.87
%
Cost of interest bearing liabilities
2.13
%
2.06
%
1.90
%
1.70
%
1.46
%
2.03
%
1.18
%
Net Interest Margin
3.87
%
3.87
%
3.95
%
3.98
%
4.03
%
3.90
%
4.02
%
Non-interest income as a percent of total revenue
26.5
%
25.3
%
25.0
%
25.6
%
24.6
%
25.8
%
25.5
%
Efficiency Ratio
48.8
%
49.3
%
48.5
%
47.4
%
46.4
%
48.9
%
45.6
%
Price/Earnings Ratio (a)
14.54
13.53
13.17
14.95
11.40
14.76
11.73
Capital (period-end) Average Shareholders' Equity to
Average Assets
11.45
%
10.90
%
11.09
%
10.27
%
10.73
%
Tangible equity to tangible assets
9.26
%
8.50
%
8.46
%
8.57
%
7.55
%
Consolidated City Holding Company risk based capital ratios (b):
CET I
16.64
%
16.10
%
16.15
%
15.70
%
15.36
%
Tier I
16.64
%
16.10
%
16.15
%
15.70
%
15.36
%
Total
17.17
%
16.64
%
16.69
%
16.23
%
15.89
%
Leverage
10.59
%
10.30
%
10.45
%
10.23
%
10.05
%
City National Bank risk based capital ratios (b): CET I
16.00
%
15.17
%
14.60
%
13.79
%
14.73
%
Tier I
16.00
%
15.17
%
14.60
%
13.79
%
14.73
%
Total
16.52
%
15.72
%
15.14
%
14.32
%
15.27
%
Leverage
10.17
%
9.68
%
9.42
%
8.94
%
9.61
%
Other (period-end) Branches
97
97
97
98
99
FTE
940
948
953
957
966
Assets per FTE (in thousands)
$
6,845
$
6,689
$
6,625
$
6,447
$
6,291
Deposits per FTE (in thousands)
5,428
5,345
5,304
5,157
5,120
(a) The price/earnings ratio is computed based on
annualized quarterly earnings. (b) September 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
Nine Months Ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
September 30, 2024
September 30, 2023
Interest Income Interest and fees on loans
$
61,407
$
59,285
$
59,128
$
57,755
$
55,582
$
179,820
$
154,939
Interest on investment securities: Taxable
14,403
13,947
12,040
12,336
12,432
40,390
35,999
Tax-exempt
824
838
830
832
910
2,492
3,022
Interest on deposits in depository institutions
1,417
1,920
1,570
941
1,265
4,907
5,440
Total Interest Income
78,051
75,990
73,568
71,864
70,189
227,609
199,400
Interest Expense Interest on deposits
17,072
15,897
14,097
12,479
10,551
47,066
24,808
Interest on short-term borrowings
3,788
3,900
3,621
3,693
2,990
11,309
8,334
Interest on FHLB long-term advances
1,586
1,568
1,423
1,026
1,034
4,577
1,683
Total Interest Expense
22,446
21,365
19,141
17,198
14,575
62,952
34,825
Net Interest Income
55,605
54,625
54,427
54,666
55,614
164,657
164,575
Provision for (Recovery of) credit losses
1,200
500
(180
)
(300
)
200
1,520
3,543
Net Interest Income After Provision for (Recovery of) Credit
Losses
54,405
54,125
54,607
54,966
55,414
163,137
161,032
Non-Interest Income Net (losses) gains on sale of
investment securities
(12
)
-
(1
)
(4,951
)
(730
)
(13
)
43
Unrealized gains (losses) recognized on equity securities still
held
353
364
(152
)
365
-
565
67
Service charges
7,531
6,980
7,035
7,158
7,124
21,546
20,593
Bankcard revenue
7,346
7,245
6,800
7,109
7,058
21,391
20,851
Trust and investment management fee income
2,923
2,762
2,623
2,563
2,409
8,308
7,000
Bank owned life insurance
1,435
775
927
1,218
807
3,137
4,819
Other income
772
785
716
774
742
2,273
3,020
Total Non-Interest Income
20,348
18,911
17,948
14,236
17,410
57,207
56,393
Non-Interest Expense Salaries and employee benefits
19,245
18,751
18,878
18,772
18,289
56,874
54,391
Occupancy related expense
2,774
2,856
2,840
2,917
2,950
8,470
8,401
Equipment and software related expense
3,431
3,130
2,929
2,824
2,830
9,490
8,805
FDIC insurance expense
734
718
711
868
919
2,163
2,054
Advertising
1,081
972
867
588
790
2,920
2,524
Bankcard expenses
2,271
2,290
2,039
2,014
2,188
6,600
5,433
Postage, delivery, and statement mailings
666
714
666
615
668
2,046
1,911
Office supplies
480
432
453
477
457
1,365
1,468
Legal and professional fees
500
551
482
478
529
1,533
1,557
Telecommunications
578
624
600
614
568
1,802
1,797
Repossessed asset losses (gains), net of expenses
21
6
229
(50
)
40
256
78
Other expenses
5,857
5,728
5,206
4,992
4,800
16,791
19,993
Total Non-Interest Expense
37,638
36,772
35,900
35,109
35,028
110,310
108,412
Income Before Income Taxes
37,115
36,264
36,655
34,093
37,796
110,034
109,013
Income tax expense
7,306
7,149
7,132
6,641
7,957
21,587
22,100
Net Income Available to Common Shareholders
$
29,809
$
29,115
$
29,523
$
27,452
$
29,839
$
88,447
$
86,913
Distributed earnings allocated to common shareholders
$
11,506
$
10,418
$
10,505
$
10,508
$
10,554
$
32,333
$
29,744
Undistributed earnings allocated to common shareholders
18,025
18,439
18,757
16,696
19,004
55,291
56,356
Net earnings allocated to common shareholders
$
29,531
$
28,857
$
29,262
$
27,204
$
29,558
$
87,624
$
86,100
Average common shares outstanding
14,633
14,695
14,795
14,758
14,922
14,691
14,906
Shares for diluted earnings per share
14,654
14,710
14,819
14,785
14,945
14,711
14,928
Basic earnings per common share
$
2.02
$
1.96
$
1.98
$
1.84
$
1.98
$
5.96
$
5.78
Diluted earnings per common share
$
2.02
$
1.96
$
1.97
$
1.84
$
1.98
$
5.96
$
5.77
CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated
Balance Sheets ($ in 000s)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Assets Cash and due from banks
$
161,333
$
141,168
$
121,853
$
123,033
$
67,402
Interest-bearing deposits in depository institutions
132,616
76,818
196,829
33,243
43,314
Cash and cash equivalents
293,949
217,986
318,682
156,276
110,716
Investment securities available-for-sale, at fair value
1,462,795
1,456,685
1,347,657
1,338,137
1,358,219
Other securities
30,859
31,237
30,681
30,966
29,022
Total investment securities
1,493,654
1,487,922
1,378,338
1,369,103
1,387,241
Gross loans
4,157,830
4,112,873
4,091,788
4,125,923
4,007,482
Allowance for credit losses
(21,832
)
(22,688
)
(22,310
)
(22,745
)
(23,128
)
Net loans
4,135,998
4,090,185
4,069,478
4,103,178
3,984,354
Bank owned life insurance
120,061
119,650
118,875
118,122
117,979
Premises and equipment, net
70,651
71,041
71,623
72,146
72,682
Accrued interest receivable
21,785
21,826
21,759
20,290
19,223
Net deferred tax assets
33,497
43,602
43,969
42,216
58,811
Goodwill and intangible assets
160,640
161,236
161,832
162,568
163,461
Other assets
104,079
127,947
129,627
124,153
161,659
Total Assets
$
6,434,314
$
6,341,395
$
6,314,183
$
6,168,052
$
6,076,126
Liabilities Deposits: Noninterest-bearing
$
1,339,538
$
1,354,660
$
1,359,072
$
1,342,804
$
1,333,474
Interest-bearing: Demand deposits
1,351,239
1,333,169
1,330,268
1,291,011
1,319,783
Savings deposits
1,208,828
1,233,834
1,266,211
1,259,457
1,282,642
Time deposits
1,203,046
1,145,617
1,100,250
1,040,990
1,009,235
Total deposits
5,102,651
5,067,280
5,055,801
4,934,262
4,945,134
Short-term borrowings FHLB short-term advances
-
-
-
25,000
-
Customer repurchase agreements
339,153
322,668
304,941
309,856
278,671
FHLB long-term advances
150,000
150,000
150,000
100,000
100,000
Other liabilities
101,211
114,707
121,210
121,868
142,187
Total Liabilities
5,693,015
5,654,655
5,631,952
5,490,986
5,465,992
Stockholders' Equity Preferred stock
-
-
-
-
-
Common stock
47,619
47,619
47,619
47,619
47,619
Capital surplus
175,602
174,834
175,747
177,424
177,113
Retained earnings
835,778
817,549
799,024
780,299
763,425
Cost of common stock in treasury
(230,836
)
(230,944
)
(218,555
)
(217,737
)
(211,430
)
Accumulated other comprehensive loss: Unrealized loss on securities
available-for-sale
(84,283
)
(119,737
)
(119,023
)
(107,958
)
(163,171
)
Underfunded pension liability
(2,581
)
(2,581
)
(2,581
)
(2,581
)
(3,422
)
Total Accumulated Other Comprehensive Loss
(86,864
)
(122,318
)
(121,604
)
(110,539
)
(166,593
)
Total Stockholders' Equity
741,299
686,740
682,231
677,066
610,134
Total Liabilities and Stockholders' Equity
$
6,434,314
$
6,341,395
$
6,314,183
$
6,168,052
$
6,076,126
Regulatory Capital Total CET 1 capital
$
669,862
$
650,108
$
644,235
$
627,579
$
615,798
Total tier 1 capital
669,862
650,108
644,235
627,579
615,798
Total risk-based capital
690,857
671,959
665,707
648,646
637,245
Total risk-weighted assets
4,024,686
4,037,614
3,989,171
3,996,688
4,009,798
CITY HOLDING COMPANY AND SUBSIDIARIES Loan
Portfolio (Unaudited) ($ in 000s)
September 30, 2024 June 30, 2024 March 31,
2024 December 31, 2023 September 30, 2023
Commercial and industrial
$
424,414
$
408,312
$
407,770
$
426,950
$
424,647
1-4 Family
194,670
195,992
202,378
206,237
197,081
Hotels
383,232
370,954
354,929
357,142
321,236
Multi-family
193,875
190,390
186,555
189,165
192,329
Non Residential Non-Owner Occupied
665,210
668,330
682,609
680,590
651,498
Non Residential Owner Occupied
236,826
235,993
232,440
240,328
222,544
Commercial real estate (1)
1,673,813
1,661,659
1,658,911
1,673,462
1,584,688
Residential real estate (2)
1,806,578
1,797,260
1,786,764
1,788,150
1,768,358
Home equity
190,149
179,607
171,292
167,201
159,630
Consumer
58,710
62,352
63,556
65,246
65,586
DDA overdrafts
4,166
3,683
3,495
4,914
4,573
Gross Loans
$
4,157,830
$
4,112,873
$
4,091,788
$
4,125,923
$
4,007,482
Construction loans included in: (1) - Commercial real estate
loans
$
2,736
$
2,233
$
6,651
$
2,459
$
2,533
(2) - Residential real estate loans
7,604
9,766
19,709
23,066
20,056
CITY HOLDING COMPANY AND SUBSIDIARIES Asset
Quality Information (Unaudited) ($ in 000s)
Three Months Ended
Nine Months Ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
September 30, 2024
September 30, 2023
Allowance for Credit Losses Balance at beginning of period
$
22,688
$
22,310
$
22,745
$
23,128
$
22,751
$
22,745
$
17,108
Charge-offs: Commercial and industrial
(206
)
(61
)
(306
)
(84
)
-
(573
)
(69
)
Commercial real estate
(1,909
)
(40
)
(31
)
(5
)
(256
)
(1,980
)
(376
)
Residential real estate
(43
)
(286
)
(19
)
(68
)
(88
)
(348
)
(140
)
Home equity
(57
)
(121
)
(27
)
(21
)
(112
)
(205
)
(379
)
Consumer
(24
)
(20
)
(115
)
(6
)
(10
)
(159
)
(181
)
DDA overdrafts
(436
)
(373
)
(356
)
(416
)
(422
)
(1,165
)
(1,229
)
Total charge-offs
(2,675
)
(901
)
(854
)
(600
)
(888
)
(4,430
)
(2,374
)
Recoveries: Commercial and industrial
24
38
25
70
597
87
766
Commercial real estate
193
165
11
17
74
369
260
Residential real estate
27
179
49
4
28
255
43
Home equity
13
38
9
13
18
60
34
Consumer
25
24
98
45
27
147
78
DDA overdrafts
337
335
407
368
321
1,079
1,034
Total recoveries
619
779
599
517
1,065
1,997
2,215
Net (charge-offs) recoveries
(2,056
)
(122
)
(255
)
(83
)
177
(2,433
)
(159
)
Provision for (Recovery of) credit losses
1,200
500
(180
)
(300
)
200
1,520
3,543
PCD Loan Reserves
-
-
-
-
-
-
2,811
Adoption of ASU 2022-02
-
-
-
-
-
-
(175
)
Balance at end of period
$
21,832
$
22,688
$
22,310
$
22,745
$
23,128
$
21,832
$
23,128
Loans outstanding
$
4,157,830
$
4,112,873
$
4,091,788
$
4,125,923
$
4,007,482
Allowance as a percent of loans outstanding
0.53
%
0.55
%
0.55
%
0.55
%
0.58
%
Allowance as a percent of non-performing loans
141.1
%
236.8
%
206.8
%
290.6
%
440.1
%
Average loans outstanding
$
4,133,520
$
4,092,464
$
4,092,529
$
4,045,889
$
3,956,871
$
4,106,271
$
3,852,057
Net charge-offs (recoveries) (annualized) as a percent of average
loans outstanding
0.20
%
0.01
%
0.02
%
0.01
%
(0.02
)%
0.08
%
0.01
%
CITY HOLDING COMPANY AND SUBSIDIARIES Asset
Quality Information, continued (Unaudited) ($ in 000s)
September 30, 2024 June 30, 2024 March 31,
2024 December 31, 2023 September 30, 2023
Nonaccrual Loans Residential real estate
$
2,596
$
3,214
$
3,452
$
2,849
$
2,839
Home equity
109
63
121
111
75
Commercial and industrial
3,631
3,135
3,405
2,211
716
Commercial real estate
9,031
3,118
3,807
2,387
1,355
Consumer
-
-
1
-
1
Total nonaccrual loans
15,367
9,530
10,786
7,558
4,986
Accruing loans past due 90 days or more
102
50
-
270
269
Total non-performing loans
15,469
9,580
10,786
7,828
5,255
Other real estate owned
729
629
752
731
720
Total non-performing assets
$
16,198
$
10,209
$
11,538
$
8,559
$
5,975
Non-performing assets as a percent of loans and other real
estate owned
0.39
%
0.25
%
0.28
%
0.21
%
0.15
%
Past Due Loans Residential real estate
$
8,205
$
7,991
$
5,035
$
8,059
$
6,247
Home equity
1,571
819
1,028
1,235
1,278
Commercial and industrial
57
1,087
26
435
568
Commercial real estate
992
565
138
715
1,478
Consumer
161
97
75
129
84
DDA overdrafts
333
327
406
364
398
Total past due loans
$
11,319
$
10,886
$
6,708
$
10,937
$
10,053
Total past due loans as a percent of loans outstanding
0.27
%
0.26
%
0.16
%
0.27
%
0.25
%
CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated
Average Balance Sheets, Yields, and Rates (Unaudited) ($ in
000s) Three Months Ended September 30,
2024 June 30, 2024 September 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)
$
1,984,502
$
25,654
5.14
%
$
1,969,769
$
24,763
5.06
%
$
1,910,876
$
22,702
4.71
%
Commercial, financial, and agriculture (2)
2,082,888
34,708
6.63
%
2,055,263
33,524
6.56
%
1,975,463
31,743
6.38
%
Installment loans to individuals (2), (3)
66,130
1,045
6.29
%
67,432
998
5.95
%
70,532
1,138
6.40
%
Total loans
4,133,520
61,407
5.91
%
4,092,464
59,285
5.83
%
3,956,871
55,583
5.57
%
Securities: Taxable
1,343,323
14,402
4.27
%
1,302,197
13,947
4.31
%
1,277,265
12,432
3.86
%
Tax-exempt (4)
159,225
1,043
2.61
%
158,894
1,060
2.68
%
170,806
1,152
2.68
%
Total securities
1,502,548
15,445
4.09
%
1,461,091
15,007
4.13
%
1,448,071
13,584
3.72
%
Deposits in depository institutions
103,322
1,417
5.46
%
139,852
1,920
5.52
%
90,684
1,265
5.53
%
Total interest-earning assets
5,739,390
78,269
5.43
%
5,693,407
76,212
5.38
%
5,495,626
70,432
5.08
%
Cash and due from banks
110,765
103,004
69,658
Premises and equipment, net
70,998
71,491
73,004
Goodwill and intangible assets
161,009
161,607
163,602
Other assets
292,758
316,440
332,551
Less: Allowance for credit losses
(23,205
)
(22,694
)
(23,558
)
Total assets
$
6,351,715
$
6,323,255
$
6,110,883
Liabilities: Interest-bearing demand deposits
$
1,321,922
$
4,100
1.23
%
$
1,320,402
$
3,845
1.17
%
$
1,300,936
$
3,068
0.94
%
Savings deposits
1,220,009
2,200
0.72
%
1,248,330
2,232
0.72
%
1,314,484
2,319
0.70
%
Time deposits (2)
1,174,217
10,772
3.65
%
1,125,036
9,820
3.51
%
985,038
5,163
2.08
%
Short-term borrowings
323,844
3,788
4.65
%
336,434
3,900
4.66
%
272,558
2,990
4.35
%
FHLB long-term advances
150,000
1,586
4.21
%
150,000
1,568
4.20
%
100,000
1,035
4.11
%
Total interest-bearing liabilities
4,189,992
22,446
2.13
%
4,180,202
21,365
2.06
%
3,973,016
14,575
1.46
%
Noninterest-bearing demand deposits
1,334,762
1,341,642
1,359,268
Other liabilities
99,797
112,301
123,137
Stockholders' equity
727,164
689,110
655,462
Total liabilities and stockholders' equity
$
6,351,715
$
6,323,255
$
6,110,883
Net interest income
$
55,823
$
54,847
$
55,857
Net yield on earning assets
3.87
%
3.87
%
4.03
%
(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
$
127
$
60
$
254
(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
$
27
$
72
$
47
Commercial, financial, and agriculture
752
683
720
Installment loans to individuals
5
6
4
Time deposits
14
21
240
$
798
$
782
$
1,011
(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)
Nine Months Ended
September 30, 2024
September 30, 2023
Average
Yield/
Average
Yield/
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
Loan portfolio (1):
Residential real estate (2)
$
1,968,377
$
74,566
5.06
%
$
1,882,397
$
64,410
4.57
%
Commercial, financial, and agriculture
(2)
2,070,431
102,211
6.59
%
1,904,001
87,745
6.16
%
Installment loans to individuals (2),
(3)
67,463
3,042
6.02
%
65,659
2,784
5.67
%
Total loans
4,106,271
179,819
5.85
%
3,852,057
154,939
5.38
%
Securities:
Taxable
1,282,167
40,390
4.21
%
1,300,373
35,999
3.70
%
Tax-exempt (4)
159,654
3,154
2.64
%
182,858
3,826
2.80
%
Total securities
1,441,821
43,544
4.03
%
1,483,231
39,825
3.59
%
Deposits in depository institutions
119,649
4,907
5.48
%
166,116
5,440
4.38
%
Total interest-earning assets
5,667,741
228,270
5.38
%
5,501,404
200,204
4.87
%
Cash and due from banks
104,269
69,998
Premises and equipment, net
71,479
72,631
Goodwill and intangible assets
161,622
150,808
Other assets
305,113
324,658
Less: Allowance for credit losses
(23,014
)
(21,602
)
Total assets
$
6,287,210
$
6,097,897
Liabilities:
Interest-bearing demand deposits
$
1,308,779
$
11,384
1.16
%
$
1,288,387
$
7,582
0.79
%
Savings deposits
1,240,788
6,705
0.72
%
1,352,005
5,610
0.55
%
Time deposits (2)
1,124,295
28,977
3.44
%
950,276
11,616
1.63
%
Short-term borrowings
324,631
11,309
4.65
%
282,857
8,334
3.94
%
FHLB long-term advances
145,620
4,577
4.20
%
55,678
1,683
4.04
%
Total interest-bearing
liabilities
4,144,113
62,952
2.03
%
3,929,203
34,825
1.18
%
Noninterest-bearing demand deposits
1,332,988
1,407,922
Other liabilities
109,194
122,854
Stockholders' equity
700,915
637,918
Total liabilities and stockholders'
equity
$
6,287,210
$
6,097,897
Net interest income
$
165,318
$
165,379
Net yield on earning assets
3.90
%
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
$
320
$
1,165
(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
$
145
$
165
Commercial, financial, and agriculture
2,499
1,575
Installment loans to individuals
17
15
Time deposits
98
403
$
2,759
$
2,158
(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
Nine Months Ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
September 30, 2024
September 30, 2023
Net Interest Income/Margin Net interest income ("GAAP")
$
55,605
$
54,625
$
54,427
$
54,666
$
55,614
$
164,657
$
164,575
Taxable equivalent adjustment
218
222
220
223
243
661
804
Net interest income, fully taxable equivalent
$
55,823
$
54,847
$
54,647
$
54,889
$
55,857
$
165,318
$
165,379
Tangible Equity Ratio (period end) Equity to assets
("GAAP")
11.52
%
10.83
%
10.81
%
10.98
%
10.04
%
Effect of goodwill and other intangibles, net
(2.26
)%
(2.33
)%
(2.35
)%
(2.41
)%
(2.49
)%
Tangible common equity to tangible assets
9.26
%
8.50
%
8.46
%
8.57
%
7.55
%
Commercial Loan Information (period end)
Commercial Sector Total % of Total
Loans Average DSC Average LTV Natural Gas
Extraction
$
26,463
0.64
%
3.71
NA
Natural Gas Distribution
19,295
0.46
%
5.46
NA
Masonry Contractors
24,847
0.60
%
1.04
84%
Sheet Metal Work Manufacturing
24,917
0.60
%
1.22
68%
Beer & Ale Merchant Wholesalers
26,613
0.64
%
3.28
NA
Gasoline Stations with Convenience Stores
39,391
0.95
%
4.76
65%
Lessors of Residential Builidings & Dwellings
424,956
10.24
%
1.89
66%
1-4 Family
187,609
4.52
%
2.97
67%
Multi-Family
171,726
4.14
%
1.84
64%
Lessors of Nonresidential Buildings
583,124
14.05
%
1.70
65%
Office Buildings
136,697
3.29
%
1.64
62%
Lessors of Mini-Warehouses & Self-Storage Units
54,043
1.30
%
1.43
61%
Assisted Living Facilities
26,580
0.64
%
1.38
61%
Hotels & Motels
383,651
9.24
%
1.45
63%
Average Balance Median Balance Commercial,
Financial, and Agriculture Loans
$
451
$
94
Commercial Real Estate Loans
515
123
CITY HOLDING COMPANY AND SUBSIDIARIES Non-GAAP
Reconciliations, continued (Unaudited) ($ in 000s, except
per share data) Estimated Uninsured Deposits
by Deposit Type September 30, 2024 June 30, 2024
Noninterest-Bearing Demand Deposits
18
%
17
%
Interest-Bearing Deposits Demand Deposits
16
%
13
%
Savings Deposits
12
%
12
%
Time Deposits
16
%
16
%
Total Deposits
15
%
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
24,853
4,007
1.6
%
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/20241024725494/en/
For Further Information Contact: David L. Bumgarner, Executive
Vice President and Chief Financial Officer (304) 769-1169
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