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City Holding Company Announces Record Annual Earnings

City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.2 billion bank holding company headquartered in Charleston, West Virginia, today announced record net income of $114.4 million and record diluted earnings of $7.61 per share for the year ended December 31, 2023. For the year ended December 31, 2023, the Company achieved a return on assets of 1.87% and a return on tangible equity of 23.8%.

“2023 was a challenging year for the banking industry, but a great year for City”, said City’s President and CEO Charles Hageboeck. “City’s strong performance during the year highlights the value of the Company’s deep customer base and conservative operating principles. During 2023, City completed the acquisition of Citizens Commerce Bancshares, Inc., and its subsidiary, Citizens Commerce Bank (“Citizens”) of Versailles, Kentucky, that enhanced our market position in central Kentucky.

“Net of loans acquired from Citizens, City grew loans over 6% during 2023, and asset quality remained strong with City only needing to take a relatively small provision for the year (excluding the provision established as part of the acquisition of Citizens). The number of checking accounts grew approximately 2% in 2023, and City saw checking accounts increase in many slow growth regions where City already has a dominant market position. We believe this growth resulted from a combination of excellent service, strong products and technology, coupled with less competition than may be present in more urban markets.

“After adjusting for security gains and losses and one-time merger costs, City’s earnings per share remained essentially flat on a quarterly basis throughout 2023 – at approximately $2.00 per share. During the year, the cost of City’s deposits rose by 60 basis points, while interest earning asset yields rose by 145 basis points. City’s average deposits in the fourth quarter of 2023 declined 5.5% from average deposits in the fourth quarter of 2022 (net of deposits acquired from Citizens), but declined only 0.5% from the third quarter of 2023 that reflects an attractive customer mix which is dependent on many, small retail deposit customers.

“City issued 667,000 shares in its acquisition of Citizens in the first quarter of 2023, but was able to repurchase essentially all of those shares during the year. As a result, the number of City’s shares outstanding at the end of 2023 only grew marginally from the end of 2022 (due to shares issued for employee and director compensation) – and City’s tangible common equity ratio increased from 8.0% at December 31, 2022, to over 8.6% at December 31, 2023 despite the large number of shares purchased.

“As a result, City begins 2024 exceptionally positioned with an extremely strong customer franchise, an exceptional team, an enviable cost of funds, strong asset quality, and competitors who seem focused on making their customers banking experiences more difficult.”

Net Interest Income

The Company’s net interest income increased from $180.0 million for the year ended December 31, 2022 to $219.2 million for the year ended December 31, 2023. The Company’s tax equivalent net interest income increased $39.0 million, or 21.5%, from $181.3 million for the year ended December 31, 2022 to $220.3 million for the year ended December 31, 2023. The acquisition of Citizens during the first quarter of 2023 added $10.6 million of net interest income during the year ended December 31, 2023. Due to increases in market rates, net interest income increased by $47.2 million due to an increase in loan yields (net of loan fees and accretion) of 127 basis points, by $14.2 million due to an increase in the yield on investment securities of 97 basis points, and by $4.9 million due to a 342 basis point increase on deposits in depository institutions. In addition, net interest income increased $4.4 million due to an increase in balances of loans of $110.2 million and by $2.0 million due to additional accretion from the year ended December 31, 2022.

These increases were partially offset by an increase in the cost of interest bearing liabilities (110 basis points) which decreased net interest income by $41.6 million, lower balances of deposits in depository institutions ($214.9 million) that lowered net interest income by $2.3 million, and lower investment balances ($57.8 million) that lowered net interest income by $1.6 million. The Company’s reported net interest margin increased from 3.33% for the year ended December 31, 2022 to 4.01% for the year ended December 31, 2023.

During the fourth quarter of 2023, the Company’s net interest income decreased from $55.6 million during the third quarter of 2023 to $54.7 million. During the fourth quarter of 2023, the Company’s tax equivalent net interest income decreased $1.0 million, or 1.7%, to $54.9 million from $55.9 million during the third quarter of 2023. Due to an increase in the cost of interest bearing liabilities (22 basis points), net interest income decreased $1.8 million. Additionally, lower investment balances ($100.4 million) decreased net interest income by $0.9 million and an increase in balances of interest bearing liabilities ($40.2 million) decreased net interest income by $0.6 million. These decreases were partially offset by an increase in loan balances of $89.0 million which increased net interest income by $1.3 million, an increase of 18 basis points on investment security yields which increased net interest income by $0.7 million, and an increase of one basis point on loans yields which increased net interest income by $0.6 million. The Company’s reported net interest margin decreased from 4.03% for the third quarter of 2023 to 3.98% for the fourth quarter of 2023.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned increased from 0.17%, or $6.3 million, at December 31, 2022 to 0.21%, or $8.6 million at December 31, 2023 primarily as a result of the acquisition of Citizens. Total past due loans increased from $9.2 million, or 0.25% of total loans outstanding, at December 31, 2022 to $10.9 million, or 0.27% of total loans outstanding, at December 31, 2023.

As a result of the Company’s quarterly analysis of the adequacy of the Allowance for Credit Losses, the Company recorded a recovery of credit losses of $0.3 million in the fourth quarter of 2023 and a provision for credit losses of $3.2 million for the year ended December 31, 2023, compared to a $0.5 million provision for credit losses for the fourth quarter and for the year ended December 31, 2022. In connection with the completion of our acquisition of Citizens during 2023, the Company recorded $2.0 million of credit loss expense associated with loans acquired from Citizens in its total provision for credit losses. Additionally, the provision for the year ended December 31, 2023 was a result of loan growth and credit downgrades that were partially offset by lower historical loss rates in the loan portfolio.

Non-interest Income

Non-interest income was $70.6 million for the year ended December 31, 2023, as compared to $72.1 million for the year ended December 31, 2022. In 2023, the Company reported $4.9 million of realized security losses and $0.4 million of unrealized security gains on the Company’s equity securities as compared to $1.6 million of unrealized security losses on the Company’s equity securities in 2022. The realized security losses during 2023, which lowered diluted earnings per share by $0.25, were executed to reposition a portion of our investment securities.

Exclusive of these realized and unrealized gains and losses, non-interest income increased $1.4 million, or 2.0%, from $73.7 million for 2022 to $75.1 million for 2023. This increase was largely attributable to an increase of $0.8 million, or 8.7%, in trust and investment management fee income and a $0.6 million, or 2.2%, increase in bankcard revenue. In addition, death benefits from bank owned life insurance increased $0.5 million from the year ended December 31, 2022. These increases were partially offset by a decrease of $0.6 million in service charges.

During the quarter ended December 31, 2023, non-interest income was $14.2 million as compared to $18.5 million during the quarter ended December 31, 2022. During the fourth quarter of 2023, the Company reported $5.0 million of realized security losses and $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 fourth quarter of 2022.

Exclusive of these realized and unrealized gains and losses, non-interest income remained consistent at $18.8 million for both the fourth quarter of 2022 and for the fourth quarter of 2023. Lower death benefits from bank owned life insurance of $0.6 million was essentially offset by higher bankcard revenue, $0.3 million or 4.7%, and trust and investment management fee income, $0.2 million or 9.4%.

Non-interest Expenses

Non-interest expenses increased $19.2 million, or 15.5%, from $124.3 million for 2022 to $143.5 million for 2023. This increase was primarily due to an increase in other expenses ($9.8 million, due primarily to higher acquisition and integration expenses associated with the completed acquisition of Citizens ($5.2 million)) and salaries and employee benefit expenses ($6.6 million due to salary adjustments, Citizens personnel ($1.9 million), and increased health insurance). In addition, bankcard expense increased $1.4 million, FDIC expense increased $1.2 million and occupancy related expenses increased $0.6 million.

In the fourth quarter of 2023, non-interest expenses increased $2.5 million (7.7%) from $32.6 million in the fourth quarter of 2022 to $35.1 million. This increase was largely due to an increase in salaries and employee benefits of $1.6 million (salary adjustments, Citizens personnel ($0.6 million), and increased health insurance) and bankcard expenses of $0.7 million. In addition, other expenses increased $0.5 million and FDIC expense increased $0.5 million. These increases were partially offset by lower equipment and software related expense ($0.5 million).

Balance Sheet Trends

Loans increased $479.7 million (13.2%) from December 31, 2022 to $4.13 billion at December 31, 2023. The Company’s acquisition of Citizens increased total loans by $254.7 million. Excluding the acquisition, total loans increased $225.0 million (6.2%) from December 31, 2022. Commercial real estate loans increased $101.4 million (7.3%); residential real estate loans increased $51.3 million (3.0%); commercial and industrial loans increased $38.4 million (10.3%); home equity loans increased $19.1 million (14.3%); and consumer loans increased $13.4 million (27.4%).

Average depository balances for the year ended December 31, 2023 approximated those for the year ended December 31, 2022 at $4.98 billion. The acquisition of Citizens increased average deposits by $243.0 million during 2023. Excluding the acquisition of Citizens, average deposits declined $237.9 million. Average savings deposits decreased $139.7 million, average noninterest bearing demand deposits decreased $87.3 million, and average time deposits decreased $68.3 million. These decreases were partially offset by an increase in average interest bearing demand deposits of $57.3 million.

Income Tax Expense

The Company’s effective income tax rates for the quarter and year ended December 31, 2023 were 19.5% and 20.1%, respectively, compared to 18.2% and 19.8% for the comparable periods in 2022.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 83.6% and the loan to asset ratio was 66.9% at December 31, 2023. The Company maintained investment securities totaling 22.2% of assets as of the same date. The Company’s deposit mix is weighted toward checking and saving accounts that fund 63.1% of assets at December 31, 2023. Time deposits fund 16.9% of assets at December 31, 2023, with only 12.6% 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, 2023, City National had the capacity to borrow an additional $2.0 billion from these existing borrowing facilities. In addition, approximately $690 million of City’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $680 million of City’s investment securities unpledged at December 31, 2023.

The Company continues to be strongly capitalized with tangible equity of $514 million at December 31, 2023. The Company’s tangible equity ratio increased from 8.0% at December 31, 2022 to 8.6% at December 30, 2023. This increase was attributable to the Company’s net income for 2023 less dividends and a decrease in unrealized losses on securities available for sale due to the impact of lower interest rates at the end of 2023.

At December 31, 2023, City National’s Leverage Ratio was 8.9%, its Common Equity Tier I ratio was 13.8%, its Tier I Capital ratio was 13.8%, and its Total Risk-Based Capital ratio was 14.3%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On November 15, 2023, the Company’s Board of Directors approved a quarterly cash dividend of $0.715 cents per share payable January 31, 2024, to shareholders of record as of January 15, 2024. During the year ended December 31, 2023, the Company repurchased 667,000 common shares at a weighted average price of $90.21 per share as part of a one million share repurchase plan authorized by the Board of Directors in May 2022. As of December 31, 2023, the Company could repurchase an additional approximately 150,000 shares under the current plan.

City National Bank operates 98 branches across West Virginia, Kentucky, Virginia, and Ohio. City National will be closing its Nichols Park branch located in Lexington, Kentucky on February 9, 2024, due to its proximity to three existing City National branches.

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, 2022 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, 2023 Form 10-K. The Company will continue to evaluate the impact of any subsequent events on the preliminary December 31, 2023 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 
Three Months Ended Twelve Months Ended
December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
 
Earnings
Net Interest Income (fully taxable equivalent)

$

54,889

 

$

55,855

 

$

55,757

 

$

53,767

 

$

52,381

 

$

220,266

 

$

181,339

 

Net Income available to common shareholders

 

27,452

 

 

29,839

 

 

32,733

 

 

24,341

 

 

30,672

 

 

114,365

 

 

102,071

 

 
Per Share Data
Earnings per share available to common shareholders:
Basic

$

1.84

 

$

1.98

 

$

2.16

 

$

1.63

 

$

2.06

 

$

7.62

 

$

6.81

 

Diluted

 

1.84

 

 

1.98

 

 

2.16

 

 

1.63

 

 

2.05

 

 

7.61

 

 

6.80

 

Weighted average number of shares (in thousands):
Basic

 

14,758

 

 

14,922

 

 

14,994

 

 

14,818

 

 

14,756

 

 

14,868

 

 

14,847

 

Diluted

 

14,785

 

 

14,945

 

 

15,012

 

 

14,844

 

 

14,785

 

 

14,891

 

 

14,873

 

Period-end number of shares (in thousands)

 

14,832

 

 

14,901

 

 

15,007

 

 

15,260

 

 

14,788

 

 

14,832

 

 

14,788

 

Cash dividends declared

$

0.72

 

$

0.72

 

$

0.65

 

$

0.65

 

$

0.65

 

$

2.73

 

$

2.50

 

Book value per share (period-end)

$

45.65

 

$

40.94

 

$

42.39

 

$

42.66

 

$

39.08

 

$

45.65

 

$

39.08

 

Tangible book value per share (period-end)

 

34.69

 

 

29.98

 

 

31.50

 

 

31.91

 

 

31.25

 

 

34.69

 

 

31.25

 

Market data:
High closing price

$

115.77

 

$

99.49

 

$

97.92

 

$

100.27

 

$

101.94

 

$

115.77

 

$

101.94

 

Low closing price

 

87.43

 

 

87.51

 

 

83.57

 

 

89.17

 

 

89.32

 

 

83.57

 

 

73.88

 

Period-end closing price

 

110.26

 

 

90.35

 

 

89.99

 

 

90.88

 

 

93.09

 

 

110.26

 

 

93.09

 

Average daily volume (in thousands)

 

62

 

 

62

 

 

80

 

 

84

 

 

75

 

 

72

 

 

70

 

Treasury share activity:
Treasury shares repurchased (in thousands)

 

70

 

 

109

 

 

269

 

 

218

 

 

69

 

 

667

 

 

325

 

Average treasury share repurchase price

$

90.61

 

$

89.33

 

$

88.93

 

$

92.10

 

$

93.12

 

$

90.21

 

$

81.50

 

 
Key Ratios (percent)
Return on average assets

 

1.78

%

 

1.94

%

 

2.12

%

 

1.63

%

 

2.08

%

 

1.87

%

 

1.71

%

Return on average tangible equity

 

23.5

%

 

24.1

%

 

27.4

%

 

19.9

%

 

27.3

%

 

23.8

%

 

20.3

%

Yield on interest earning assets

 

5.23

%

 

5.08

%

 

4.87

%

 

4.66

%

 

4.23

%

 

4.96

%

 

3.51

%

Cost of interest bearing liabilities

 

1.70

%

 

1.46

%

 

1.22

%

 

0.86

%

 

0.48

%

 

1.32

%

 

0.25

%

Net Interest Margin

 

3.98

%

 

4.03

%

 

4.00

%

 

4.05

%

 

3.89

%

 

4.01

%

 

3.33

%

Non-interest income as a percent of total revenue

 

25.6

%

 

24.6

%

 

27.1

%

 

24.7

%

 

26.5

%

 

25.6

%

 

28.6

%

Efficiency Ratio

 

47.4

%

 

46.4

%

 

44.6

%

 

45.7

%

 

45.3

%

 

46.0

%

 

48.2

%

Price/Earnings Ratio (a)

 

14.95

 

 

11.40

 

 

10.40

 

 

13.95

 

 

11.30

 

 

14.47

 

 

13.67

 

 
Capital (period-end)
Average Shareholders' Equity to Average Assets

 

10.27

%

 

10.73

%

 

10.38

%

 

10.31

%

 

9.57

%

Tangible equity to tangible assets

 

8.57

%

 

7.55

%

 

7.90

%

 

8.05

%

 

8.02

%

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

 

15.70

%

 

15.36

%

 

15.47

%

 

15.64

%

 

16.23

%

Tier I

 

15.70

%

 

15.36

%

 

15.47

%

 

15.64

%

 

16.23

%

Total

 

16.23

%

 

15.89

%

 

16.01

%

 

16.18

%

 

16.62

%

Leverage

 

10.23

%

 

10.05

%

 

9.80

%

 

10.20

%

 

10.01

%

City National Bank risk based capital ratios (b):
CET I

 

13.79

%

 

14.73

%

 

14.82

%

 

14.08

%

 

13.88

%

Tier I

 

13.79

%

 

14.73

%

 

14.82

%

 

14.08

%

 

13.88

%

Total

 

14.32

%

 

15.27

%

 

15.36

%

 

14.63

%

 

14.28

%

Leverage

 

8.94

%

 

9.61

%

 

9.36

%

 

9.18

%

 

8.55

%

 
Other (period-end)
Branches

 

98

 

 

99

 

 

99

 

 

99

 

 

94

 

FTE

 

957

 

 

966

 

 

963

 

 

958

 

 

909

 

 
Assets per FTE (in thousands)

$

6,447

 

$

6,291

 

$

6,383

 

$

6,483

 

$

6,467

 

Deposits per FTE (in thousands)

 

5,157

 

 

5,120

 

 

5,208

 

 

5,362

 

 

5,357

 

 
 
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) December 31, 2023 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, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
 
Interest Income
Interest and fees on loans

$

57,755

 

$

55,582

 

$

52,352

 

$

47,004

$

42,963

 

$

212,693

 

$

146,538

 

Interest on investment securities:
Taxable

 

12,336

 

 

12,432

 

 

11,794

 

 

11,773

 

11,119

 

 

48,335

 

 

34,445

 

Tax-exempt

 

832

 

 

910

 

 

950

 

 

1,162

 

1,262

 

 

3,854

 

 

4,911

 

Interest on deposits in depository institutions

 

941

 

 

1,265

 

 

2,585

 

 

1,591

 

1,244

 

 

6,382

 

 

3,794

 

Total Interest Income

 

71,864

 

 

70,189

 

 

67,681

 

 

61,530

 

56,588

 

 

271,264

 

 

189,688

 

 
Interest Expense
Interest on deposits

 

12,479

 

 

10,551

 

 

8,567

 

 

5,690

 

3,010

 

 

37,287

 

 

7,444

 

Interest on short-term borrowings

 

3,693

 

 

2,990

 

 

2,963

 

 

2,381

 

1,533

 

 

12,027

 

 

2,211

 

Interest on FHLB long-term advances

 

1,026

 

 

1,034

 

 

649

 

 

-

 

-

 

 

2,709

 

 

-

 

Total Interest Expense

 

17,198

 

 

14,575

 

 

12,179

 

 

8,071

 

4,543

 

 

52,023

 

 

9,655

 

Net Interest Income

 

54,666

 

 

55,614

 

 

55,502

 

 

53,459

 

52,045

 

 

219,241

 

 

180,033

 

(Recovery of) Provision for credit losses

 

(300

)

 

200

 

 

425

 

 

2,918

 

500

 

 

3,243

 

 

474

 

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

 

54,966

 

 

55,414

 

 

55,077

 

 

50,541

 

51,545

 

 

215,998

 

 

179,559

 

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

 

(4,951

)

 

(730

)

 

-

 

 

773

 

4

 

 

(4,908

)

 

4

 

Unrealized gains/(losses) recognized on equity securities still held

 

365

 

 

-

 

 

(294

)

 

361

 

(262

)

 

432

 

 

(1,585

)

Service charges

 

7,158

 

 

7,124

 

 

6,906

 

 

6,563

 

7,056

 

 

27,751

 

 

28,335

 

Bankcard revenue

 

7,109

 

 

7,058

 

 

7,190

 

 

6,603

 

6,791

 

 

27,960

 

 

27,349

 

Trust and investment management fee income

 

2,563

 

 

2,409

 

 

2,339

 

 

2,252

 

2,343

 

 

9,563

 

 

8,798

 

Bank owned life insurance

 

1,218

 

 

807

 

 

3,208

 

 

804

 

1,813

 

 

6,037

 

 

5,559

 

Other income

 

774

 

 

742

 

 

952

 

 

1,326

 

791

 

 

3,794

 

 

3,617

 

Total Non-Interest Income

 

14,236

 

 

17,410

 

 

20,301

 

 

18,682

 

18,536

 

 

70,629

 

 

72,077

 

 
Non-Interest Expense
Salaries and employee benefits

 

18,772

 

 

18,289

 

 

18,429

 

 

17,673

 

17,148

 

 

73,163

 

 

66,536

 

Occupancy related expense

 

2,917

 

 

2,950

 

 

2,811

 

 

2,640

 

2,725

 

 

11,318

 

 

10,718

 

Equipment and software related expense

 

2,824

 

 

2,830

 

 

2,883

 

 

3,092

 

3,341

 

 

11,629

 

 

11,791

 

FDIC insurance expense

 

868

 

 

919

 

 

690

 

 

445

 

413

 

 

2,922

 

 

1,673

 

Advertising

 

588

 

 

790

 

 

974

 

 

760

 

802

 

 

3,112

 

 

3,405

 

Bankcard expenses

 

2,014

 

 

2,188

 

 

1,736

 

 

1,509

 

1,356

 

 

7,447

 

 

6,032

 

Postage, delivery, and statement mailings

 

615

 

 

668

 

 

596

 

 

647

 

597

 

 

2,526

 

 

2,362

 

Office supplies

 

477

 

 

457

 

 

591

 

 

420

 

441

 

 

1,945

 

 

1,744

 

Legal and professional fees

 

478

 

 

529

 

 

558

 

 

470

 

610

 

 

2,035

 

 

2,194

 

Telecommunications

 

614

 

 

568

 

 

623

 

 

606

 

627

 

 

2,411

 

 

2,616

 

Repossessed asset (gains)/losses, net of expenses

 

(50

)

 

40

 

 

22

 

 

16

 

54

 

 

28

 

 

59

 

Other expenses

 

4,992

 

 

4,800

 

 

4,848

 

 

10,345

 

4,471

 

 

24,985

 

 

15,172

 

Total Non-Interest Expense

 

35,109

 

 

35,028

 

 

34,761

 

 

38,623

 

32,585

 

 

143,521

 

 

124,302

 

Income Before Income Taxes

 

34,093

 

 

37,796

 

 

40,617

 

 

30,600

 

37,496

 

 

143,106

 

 

127,334

 

Income tax expense

 

6,641

 

 

7,957

 

 

7,884

 

 

6,259

 

6,824

 

 

28,741

 

 

25,263

 

Net Income Available to Common Shareholders

$

27,452

 

$

29,839

 

$

32,733

 

$

24,341

$

30,672

 

$

114,365

 

$

102,071

 

 
Distributed earnings allocated to common shareholders

$

10,508

 

$

10,554

 

$

9,668

 

$

9,833

$

9,521

 

$

40,121

 

$

36,619

 

Undistributed earnings allocated to common shareholders

 

16,696

 

 

19,004

 

 

22,774

 

 

14,294

 

20,857

 

 

73,208

 

 

64,494

 

Net earnings allocated to common shareholders

$

27,204

 

$

29,558

 

$

32,442

 

$

24,127

$

30,378

 

$

113,329

 

$

101,113

 

 
Average common shares outstanding

 

14,758

 

 

14,922

 

 

14,994

 

 

14,818

 

14,756

 

 

14,868

 

 

14,847

 

Shares for diluted earnings per share

 

14,785

 

 

14,945

 

 

15,012

 

 

14,844

 

14,785

 

 

14,891

 

 

14,873

 

 
Basic earnings per common share

$

1.84

 

$

1.98

 

$

2.16

 

$

1.63

$

2.06

 

$

7.62

 

$

6.81

 

Diluted earnings per common share

$

1.84

 

$

1.98

 

$

2.16

 

$

1.63

$

2.05

 

$

7.61

 

$

6.80

 

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited) (Unaudited) (Unaudited)
December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022
 
Assets
Cash and due from banks

$

123,033

 

$

67,402

 

$

69,622

 

$

76,223

 

$

70,257

 

Interest-bearing deposits in depository institutions

 

33,243

 

 

43,314

 

 

161,659

 

 

226,587

 

 

129,743

 

Cash and cash equivalents

 

156,276

 

 

110,716

 

 

231,281

 

 

302,810

 

 

200,000

 

 
Investment securities available-for-sale, at fair value

 

1,338,137

 

 

1,358,219

 

 

1,419,933

 

 

1,456,259

 

 

1,505,520

 

Other securities

 

30,966

 

 

29,022

 

 

29,262

 

 

24,728

 

 

23,807

 

Total investment securities

 

1,369,103

 

 

1,387,241

 

 

1,449,195

 

 

1,480,987

 

 

1,529,327

 

 
Gross loans

 

4,125,923

 

 

4,007,482

 

 

3,922,142

 

 

3,894,686

 

 

3,646,258

 

Allowance for credit losses

 

(22,745

)

 

(23,128

)

 

(22,751

)

 

(22,724

)

 

(17,108

)

Net loans

 

4,103,178

 

 

3,984,354

 

 

3,899,391

 

 

3,871,962

 

 

3,629,150

 

 
Bank owned life insurance

 

118,122

 

 

117,979

 

 

117,173

 

 

124,238

 

 

120,674

 

Premises and equipment, net

 

72,146

 

 

72,682

 

 

73,118

 

 

73,430

 

 

70,786

 

Accrued interest receivable

 

20,290

 

 

19,223

 

 

17,973

 

 

18,395

 

 

18,287

 

Net deferred tax assets

 

42,216

 

 

58,811

 

 

46,944

 

 

42,146

 

 

44,884

 

Goodwill and intangible assets

 

162,568

 

 

163,461

 

 

163,426

 

 

164,099

 

 

115,735

 

Other assets

 

124,153

 

 

161,659

 

 

148,333

 

 

132,715

 

 

149,263

 

Total Assets

$

6,168,052

 

$

6,076,126

 

$

6,146,834

 

$

6,210,782

 

$

5,878,106

 

 
Liabilities
Deposits:
Noninterest-bearing

$

1,342,804

 

$

1,333,474

 

$

1,373,106

 

$

1,420,990

 

$

1,351,415

 

Interest-bearing:
Demand deposits

 

1,291,011

 

 

1,319,783

 

 

1,337,445

 

 

1,356,017

 

 

1,233,482

 

Savings deposits

 

1,259,457

 

 

1,282,642

 

 

1,343,571

 

 

1,397,523

 

 

1,396,869

 

Time deposits

 

1,040,990

 

 

1,009,235

 

 

960,941

 

 

962,235

 

 

888,100

 

Total deposits

 

4,934,262

 

 

4,945,134

 

 

5,015,063

 

 

5,136,765

 

 

4,869,866

 

Short-term borrowings
FHLB short-term advances

 

25,000

 

 

-

 

 

-

 

 

-

 

 

-

 

Customer repurchase agreements

 

309,856

 

 

278,671

 

 

271,714

 

 

293,256

 

 

290,964

 

FHLB long-term advances

 

100,000

 

 

100,000

 

 

100,000

 

 

-

 

 

-

 

Other liabilities

 

121,868

 

 

142,187

 

 

123,865

 

 

129,711

 

 

139,424

 

Total Liabilities

 

5,490,986

 

 

5,465,992

 

 

5,510,642

 

 

5,559,732

 

 

5,300,254

 

 
Stockholders' Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

Capital surplus

 

177,424

 

 

177,113

 

 

176,746

 

 

177,529

 

 

170,980

 

Retained earnings

 

780,299

 

 

763,425

 

 

744,248

 

 

721,727

 

 

706,696

 

Cost of common stock in treasury

 

(217,737

)

 

(211,430

)

 

(201,973

)

 

(179,436

)

 

(215,955

)

Accumulated other comprehensive (loss) income:
Unrealized (loss) gain on securities available-for-sale

 

(107,958

)

 

(163,171

)

 

(127,026

)

 

(112,967

)

 

(128,066

)

Underfunded pension liability

 

(2,581

)

 

(3,422

)

 

(3,422

)

 

(3,422

)

 

(3,422

)

Total Accumulated Other Comprehensive (Loss) Income

 

(110,539

)

 

(166,593

)

 

(130,448

)

 

(116,389

)

 

(131,488

)

Total Stockholders' Equity

 

677,066

 

 

610,134

 

 

636,192

 

 

651,050

 

 

577,852

 

Total Liabilities and Stockholders' Equity

$

6,168,052

 

$

6,076,126

 

$

6,146,834

 

$

6,210,782

 

$

5,878,106

 

 
Regulatory Capital
Total CET 1 capital

$

627,579

 

$

615,798

 

$

605,661

 

$

606,675

 

$

598,068

 

Total tier 1 capital

 

627,579

 

 

615,798

 

 

605,661

 

 

606,675

 

 

598,068

 

Total risk-based capital

 

648,646

 

 

637,245

 

 

626,730

 

 

627,718

 

 

612,654

 

Total risk-weighted assets

 

3,996,688

 

 

4,009,798

 

 

3,913,870

 

 

3,878,994

 

 

3,685,207

 

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
 
 
December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022
 
Commercial and industrial

$

426,950

$

424,647

$

417,847

$

390,861

$

373,890

 
1-4 Family

 

206,237

 

135,226

 

123,701

 

119,017

 

116,192

Hotels

 

357,142

 

321,236

 

324,745

 

327,554

 

340,404

Multi-family

 

189,165

 

192,329

 

191,483

 

195,042

 

174,786

Non Residential Non-Owner Occupied

 

680,590

 

713,353

 

673,921

 

679,782

 

585,964

Non Residential Owner Occupied

 

240,328

 

222,544

 

222,852

 

223,096

 

174,961

Commercial real estate (1)

 

1,673,462

 

1,584,688

 

1,536,702

 

1,544,491

 

1,392,307

 
Residential real estate (2)

 

1,788,150

 

1,768,358

 

1,746,618

 

1,737,604

 

1,693,523

Home equity

 

167,201

 

159,630

 

151,012

 

151,341

 

134,317

Consumer

 

65,246

 

65,586

 

65,201

 

66,994

 

48,806

DDA overdrafts

 

4,914

 

4,573

 

4,762

 

3,395

 

3,415

Gross Loans

$

4,125,923

$

4,007,482

$

3,922,142

$

3,894,686

$

3,646,258

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

$

2,459

$

2,533

$

3,361

$

4,715

$

4,130

(2) - Residential real estate loans

 

23,066

 

20,056

 

20,470

 

25,224

 

21,122

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
 
Three Months Ended Twelve Months Ended
December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Allowance for Credit Losses
Balance at beginning of period

$

23,128

 

$

22,751

 

$

22,724

 

$

17,108

 

$

17,011

 

$

17,108

 

$

18,166

 

 
Charge-offs:
Commercial and industrial

 

(84

)

 

-

 

 

(69

)

 

-

 

 

(120

)

 

(153

)

 

(562

)

Commercial real estate

 

(5

)

 

(256

)

 

(117

)

 

(3

)

 

(31

)

 

(381

)

 

(55

)

Residential real estate

 

(68

)

 

(88

)

 

(20

)

 

(32

)

 

(66

)

 

(208

)

 

(265

)

Home equity

 

(21

)

 

(112

)

 

(200

)

 

(67

)

 

(189

)

 

(400

)

 

(279

)

Consumer

 

(6

)

 

(10

)

 

(109

)

 

(62

)

 

(15

)

 

(187

)

 

(63

)

DDA overdrafts

 

(416

)

 

(422

)

 

(357

)

 

(450

)

 

(670

)

 

(1,645

)

 

(2,624

)

Total charge-offs

 

(600

)

 

(888

)

 

(872

)

 

(614

)

 

(1,091

)

 

(2,974

)

 

(3,848

)

 
Recoveries:
Commercial and industrial

 

70

 

 

597

 

 

86

 

 

83

 

 

94

 

 

836

 

 

334

 

Commercial real estate

 

17

 

 

74

 

 

28

 

 

158

 

 

120

 

 

277

 

 

207

 

Residential real estate

 

4

 

 

28

 

 

5

 

 

10

 

 

49

 

 

47

 

 

99

 

Home equity

 

13

 

 

18

 

 

12

 

 

4

 

 

34

 

 

47

 

 

56

 

Consumer

 

45

 

 

27

 

 

28

 

 

23

 

 

31

 

 

123

 

 

107

 

DDA overdrafts

 

368

 

 

321

 

 

315

 

 

398

 

 

360

 

 

1,402

 

 

1,513

 

Total recoveries

 

517

 

 

1,065

 

 

474

 

 

676

 

 

688

 

 

2,732

 

 

2,316

 

 
Net (charge-offs) recoveries

 

(83

)

 

177

 

 

(398

)

 

62

 

 

(403

)

 

(242

)

 

(1,532

)

(Recovery of) provision for credit losses

 

(300

)

 

200

 

 

425

 

 

2,918

 

 

500

 

 

3,243

 

 

474

 

PCD Loan Reserves

 

-

 

 

-

 

 

-

 

 

2,811

 

 

-

 

 

2,811

 

 

-

 

Adoption of ASU 2022-02

 

-

 

 

-

 

 

-

 

 

(175

)

 

-

 

 

(175

)

 

-

 

Balance at end of period

$

22,745

 

$

23,128

 

$

22,751

 

$

22,724

 

$

17,108

 

$

22,745

 

$

17,108

 

 
Loans outstanding

$

4,125,923

 

$

4,007,482

 

$

3,922,142

 

$

3,894,686

 

$

3,646,258

 

Allowance as a percent of loans outstanding

 

0.55

%

 

0.58

%

 

0.58

%

 

0.58

%

 

0.47

%

Allowance as a percent of non-performing loans

 

290.6

%

 

440.1

%

 

405.5

%

 

400.1

%

 

317.3

%

 
Average loans outstanding

$

4,045,889

 

$

3,956,871

 

$

3,896,284

 

$

3,700,194

 

$

3,648,996

 

$

3,900,913

 

$

3,583,526

 

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

 

0.01

%

 

(0.02

)%

 

0.04

%

 

(0.01

)%

 

0.04

%

 

0.01

%

 

0.04

%

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
 
December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022
Nonaccrual Loans
Residential real estate

$

2,849

 

$

2,839

 

$

2,774

 

$

2,700

 

$

1,969

 

Home equity

 

111

 

 

75

 

 

24

 

 

35

 

 

55

 

Commercial and industrial

 

2,211

 

 

716

 

 

741

 

 

994

 

 

1,015

 

Commercial real estate

 

2,387

 

 

1,355

 

 

1,821

 

 

1,931

 

 

2,166

 

Consumer

 

-

 

 

1

 

 

36

 

 

19

 

 

-

 

Total nonaccrual loans

 

7,558

 

 

4,986

 

 

5,396

 

 

5,679

 

 

5,205

 

Accruing loans past due 90 days or more

 

270

 

 

269

 

 

215

 

 

-

 

 

187

 

Total non-performing loans

 

7,828

 

 

5,255

 

 

5,611

 

 

5,679

 

 

5,392

 

Other real estate owned

 

731

 

 

720

 

 

874

 

 

843

 

 

909

 

Total non-performing assets

$

8,559

 

$

5,975

 

$

6,485

 

$

6,522

 

$

6,301

 

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

 

0.21

%

 

0.15

%

 

0.17

%

 

0.17

%

 

0.17

%

 
Past Due Loans
Residential real estate

$

8,059

 

$

6,247

 

$

5,884

 

$

4,783

 

$

7,091

 

Home equity

 

1,235

 

 

1,278

 

 

784

 

 

551

 

 

650

 

Commercial and industrial

 

435

 

 

568

 

 

142

 

 

98

 

 

234

 

Commercial real estate

 

715

 

 

1,478

 

 

238

 

 

148

 

 

710

 

Consumer

 

129

 

 

84

 

 

57

 

 

3

 

 

100

 

DDA overdrafts

 

364

 

 

398

 

 

341

 

 

276

 

 

391

 

Total past due loans

$

10,937

 

$

10,053

 

$

7,446

 

$

5,859

 

$

9,176

 

 
Total past due loans as a percent of loans outstanding

 

0.27

%

 

0.25

%

 

0.19

%

 

0.15

%

 

0.25

%

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
 
Three Months Ended
December 31, 2023 September 30, 2023 December 31, 2022
Average Yield/ Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2)

$

1,945,185

 

$

23,673

4.83

%

$

1,910,876

 

$

22,702

4.71

%

$

1,824,327

 

$

18,973

 

4.13

%

Commercial, financial, and agriculture (2)

 

2,031,089

 

 

33,038

6.45

%

 

1,975,463

 

 

31,743

6.38

%

 

1,773,937

 

 

23,346

 

5.22

%

Installment loans to individuals (2), (3)

 

69,615

 

 

1,046

5.96

%

 

70,532

 

 

1,138

6.40

%

 

50,732

 

 

646

 

5.05

%

Total loans

 

4,045,889

 

 

57,757

5.66

%

 

3,956,871

 

 

55,583

5.57

%

 

3,648,996

 

 

42,965

 

4.67

%

Securities:
Taxable

 

1,194,448

 

 

12,336

4.10

%

 

1,277,265

 

 

12,432

3.86

%

 

1,315,453

 

 

11,118

 

3.35

%

Tax-exempt (4)

 

153,204

 

 

1,053

2.73

%

 

170,806

 

 

1,152

2.68

%

 

211,326

 

 

1,597

 

3.00

%

Total securities

 

1,347,652

 

 

13,389

3.94

%

 

1,448,071

 

 

13,584

3.72

%

 

1,526,779

 

 

12,715

 

3.30

%

Deposits in depository institutions

 

71,624

 

 

941

5.21

%

 

90,994

 

 

1,265

5.52

%

 

162,732

 

 

1,245

 

3.04

%

Total interest-earning assets

 

5,465,165

 

 

72,087

5.23

%

 

5,495,936

 

 

70,432

5.08

%

 

5,338,507

 

 

56,925

 

4.23

%

Cash and due from banks

 

87,633

 

 

69,348

 

 

69,223

 

Premises and equipment, net

 

72,435

 

 

73,004

 

 

71,482

 

Goodwill and intangible assets

 

163,220

 

 

163,602

 

 

115,952

 

Other assets

 

342,669

 

 

332,551

 

 

332,855

 

Less: Allowance for credit losses

 

(23,532

)

 

(23,558

)

 

(17,332

)

Total assets

$

6,107,590

 

$

6,110,883

 

$

5,910,687

 

 
Liabilities:
Interest-bearing demand deposits

$

1,299,683

 

$

3,467

1.06

%

$

1,300,936

 

$

3,068

0.94

%

$

1,150,327

 

$

684

 

0.24

%

Savings deposits

 

1,274,726

 

 

2,369

0.74

%

 

1,314,484

 

 

2,319

0.70

%

 

1,412,246

 

 

829

 

0.23

%

Time deposits (2)

 

1,025,870

 

 

6,644

2.57

%

 

985,038

 

 

5,163

2.08

%

 

916,845

 

 

1,497

 

0.65

%

Short-term borrowings

 

312,941

 

 

3,693

4.68

%

 

272,558

 

 

2,990

4.35

%

 

303,599

 

 

1,534

 

2.00

%

FHLB long-term advances

 

100,000

 

 

1,026

4.07

%

 

100,000

 

 

1,035

4.11

%

 

-

 

 

-

 

-

 

Total interest-bearing liabilities

 

4,013,220

 

 

17,199

1.70

%

 

3,973,016

 

 

14,575

1.46

%

 

3,783,017

 

 

4,544

 

0.48

%

Noninterest-bearing demand deposits

 

1,334,021

 

 

1,359,268

 

 

1,428,013

 

Other liabilities

 

132,862

 

 

123,137

 

 

134,075

 

Stockholders' equity

 

627,487

 

 

655,462

 

 

565,582

 

Total liabilities and
stockholders' equity

$

6,107,590

 

$

6,110,883

 

$

5,910,687

 

Net interest income

$

54,888

$

55,857

$

52,381

 

Net yield on earning assets

3.98

%

4.03

%

3.89

%

 
(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

$

201

$

254

$

(41

)

 
(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

$

78

$

47

$

67

 

Commercial, financial, and agriculture

 

702

 

720

 

135

 

Installment loans to individuals

 

26

 

4

 

4

 

Time deposits

 

131

 

240

 

21

 

$

937

$

1,011

$

227

 

 
(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, 2023 December 31, 2022
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2)

$

1,899,239

 

$

88,083

4.64

%

$

1,755,772

 

$

68,581

3.91

%

Commercial, financial, and agriculture (2)

 

1,935,038

 

 

120,783

6.24

%

 

1,781,132

 

 

75,390

4.23

%

Installment loans to individuals (2), (3)

 

66,636

 

 

3,828

5.74

%

 

46,622

 

 

2,567

5.51

%

Total loans

 

3,900,913

 

 

212,694

5.45

%

 

3,583,526

 

 

146,538

4.09

%

Securities:
Taxable

 

1,273,674

 

 

48,335

3.79

%

 

1,288,252

 

 

34,445

2.67

%

Tax-exempt (4)

 

175,383

 

 

4,878

2.78

%

 

218,588

 

 

6,217

2.84

%

Total securities

 

1,449,057

 

 

53,213

3.67

%

 

1,506,840

 

 

40,662

2.70

%

Deposits in depository institutions

 

142,299

 

 

6,382

4.48

%

 

357,184

 

 

3,794

1.06

%

Total interest-earning assets

 

5,492,269

 

 

272,289

4.96

%

 

5,447,550

 

 

190,994

3.51

%

Cash and due from banks

 

74,443

 

 

88,581

 

Premises and equipment, net

 

72,582

 

 

72,590

 

Goodwill and intangible assets

 

153,937

 

 

116,469

 

Other assets

 

329,198

 

 

271,685

 

Less: Allowance for credit losses

 

(22,089

)

 

(17,687

)

Total assets

$

6,100,340

 

$

5,979,188

 

 
Liabilities:
Interest-bearing demand deposits

$

1,291,234

 

$

11,048

0.86

%

$

1,150,007

 

$

1,234

0.11

%

Savings deposits

 

1,332,527

 

 

7,979

0.60

%

 

1,414,727

 

 

1,544

0.11

%

Time deposits (2)

 

969,329

 

 

18,260

1.88

%

 

983,046

 

 

4,666

0.47

%

Short-term borrowings

 

290,440

 

 

12,027

4.14

%

 

284,611

 

 

2,211

0.78

%

FHLB long-term advances

 

66,849

 

 

2,709

4.05

%

 

-

 

 

-

-

 

Total interest-bearing liabilities

 

3,950,379

 

 

52,023

1.32

%

 

3,832,391

 

 

9,655

0.25

%

Noninterest-bearing demand deposits

 

1,389,295

 

 

1,429,415

 

Other liabilities

 

125,377

 

 

98,553

 

Stockholders' equity

 

635,289

 

 

618,829

 

Total liabilities and
stockholders' equity

$

6,100,340

 

$

5,979,188

 

Net interest income

$

220,266

$

181,339

Net yield on earning assets

4.01

%

3.33

%

 
(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

$

1,366

$

568

 
(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

$

243

$

298

Commercial, financial, and agriculture

 

2,276

 

642

Installment loans to individuals

 

41

 

45

Time deposits

 

535

 

83

$

3,095

$

1,068

 
(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, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net Interest Income/Margin
Net interest income ("GAAP")

$

54,666

 

$

55,614

 

$

55,502

 

$

53,459

 

$

52,045

 

$

219,241

 

$

180,033

 

Taxable equivalent adjustment

 

223

 

 

243

 

 

255

 

 

308

 

 

336

 

 

1,025

 

 

1,306

 

Net interest income, fully taxable equivalent

$

54,889

 

$

55,857

 

$

55,757

 

$

53,767

 

$

52,381

 

$

220,266

 

$

181,339

 

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

 

10.98

%

 

10.04

%

 

10.35

%

 

10.48

%

 

9.83

%

Effect of goodwill and other intangibles, net

 

(2.41

)%

 

(2.49

)%

 

(2.45

)%

 

(2.43

)%

 

(1.81

)%

Tangible common equity to tangible assets

 

8.57

%

 

7.55

%

 

7.90

%

 

8.05

%

 

8.02

%

 
Return on Average Tangible Equity and Return on Assets Ratios (period end)
Return on average tangible equity ("GAAP")

 

23.8

%

 

20.3

%

Impact of merger related expenses

 

0.8

%

 

-

%

Impact of merger related provision

 

0.3

%

 

-

%

Return on tangible equity, excluding merger related expenses and provision

 

24.9

%

 

20.3

%

 
Return on assets ("GAAP")

 

1.87

%

 

1.71

%

Impact of merger related expenses

 

0.07

%

 

-

%

Impact of merger related provision

 

0.03

%

 

-

%

Return on assets, excluding merger related expenses and provision

 

1.97

%

 

1.71

%

 
 
 
Commercial Loan Information (period end)
 
Commercial Sector Total % of Total Loans Average DSC Average LTV
 
Natural Gas Extraction

$

23,743

 

 

0.58

%

 

3.68

 

 

N/A

 

Natural Gas Distribution

 

20,000

 

 

0.49

%

 

2.61

 

 

N/A

 

Masonry Contractors

 

24,190

 

 

0.59

%

 

1.13

 

 

84

%

Sheet Metal Work Manufacturing

 

25,887

 

 

0.63

%

 

1.57

 

 

68

%

Beer & Ale Merchant Wholesalers

 

25,672

 

 

0.62

%

 

3.28

 

 

N/A

 

Gasoline Stations with Convenience Stores

 

45,945

 

 

1.11

%

 

4.19

 

 

65

%

Lessors of Residential Buildings & Dwellings

 

433,506

 

 

10.52

%

 

1.89

 

 

66

%

1-4 Family

 

186,341

 

 

4.52

%

 

2.97

 

 

68

%

Multi-Family

 

179,822

 

 

4.36

%

 

1.84

 

 

66

%

Lessors of Nonresidential Buildings

 

611,108

 

 

14.83

%

 

1.70

 

 

65

%

Office Buildings

 

43,735

 

 

1.06

%

 

1.64

 

 

63

%

Lessors of Mini-Warehouses & Self-Storage Units

 

50,898

 

 

1.23

%

 

1.62

 

 

61

%

Assisted Living Facilities

 

27,620

 

 

0.67

%

 

1.38

 

 

57

%

Hotels & Motels

 

357,572

 

 

8.68

%

 

1.43

 

 

62

%

 
Average Balance Median Balance
Commercial, Financial, and Agriculture Loans

$

456

 

$

93

 

Commercial Real Estate Loans

 

517

 

 

120

 

 
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued
(Unaudited) ($ in 000s, except per share data)
 
 
Estimated Uninsured Deposits by Deposit Type
December 31, 2023 September 30, 2023
Noninterest-Bearing Demand Deposits

 

16

%

 

17

%

 
Interest-Bearing Deposits
Demand Deposits

 

7

%

 

11

%

Savings Deposits

 

11

%

 

11

%

Time Deposits

 

13

%

 

14

%

Total Deposits

 

12

%

 

13

%

 
 
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
 

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).

 

Contacts

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

(304) 769-1169

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