City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.1
billion bank holding company headquartered in Charleston, West
Virginia, today announced quarterly net income of $29.9 million and
diluted earnings of $1.98 per share for the quarter ended September
30, 2023. For the third quarter of 2023, the Company achieved a
return on assets of 1.94% and a return on tangible equity of
24.1%.
Net Interest Income
The Company’s net interest income increased approximately $0.1
million, or 0.2%, from $55.5 million during the second quarter of
2023 to $55.6 million during the third quarter of 2023. The
Company’s tax equivalent net interest income increased $0.1
million, or 0.2%, from $55.8 million for the second quarter of 2023
to $55.9 million for the third quarter of 2023. Due to recent
increases in the Federal Funds rate, net interest income increased
by $2.6 million due to an increase in loan yields (net of loan fees
and accretion) of 22 basis points and by $0.8 million due to an
increase in the yield on investment securities of 19 basis points.
In addition, net interest income increased $0.8 million due to an
increase in balances of loans of $60.6 million from the quarter
ended June 30, 2023. These increases were partially offset by an
increase in the cost of interest bearing liabilities (26 basis
points) which decreased net interest income by $2.4 million and
lower balances of deposits in depository institutions of $133.1
million that lowered net interest income by $1.6 million. The
Company’s reported net interest margin increased from 4.00% for the
second quarter of 2023 to 4.03% for the third quarter of 2023.
Credit Quality
The Company’s ratio of nonperforming assets to total loans and
other real estate owned declined slightly from 0.17%, or $6.5
million, at June 30, 2023 to 0.15%, or $6.0 million, at September
30, 2023. Total past due loans increased from $7.4 million, or
0.19% of total loans outstanding, at June 30, 2023, to $10.1
million, or 0.25% of total loans outstanding at September 30,
2023.
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 $0.2 million in the third quarter of
2023, compared to a provision for credit losses of $0.7 million for
the comparable period in 2022, and a provision for credit losses of
$0.4 million for the second quarter of 2023. The provision for
credit losses in the third quarter was primarily the result of the
downgrade of a commercial loan and loan growth partially offset by
net recoveries during the quarter.
Non-interest Income
Non-interest income was $17.4 million during the quarter ended
September 30, 2023, as compared to $18.2 million during the quarter
ended September 30, 2022. During the third quarter of 2023, the
Company reported $0.7 million of realized security losses.
Exclusive of the realized security loss, non-interest income
decreased $0.1 million, or 0.6%, from $18.2 million for the third
quarter of 2022 to $18.1 million for the third quarter of 2023.
This decrease was largely attributable to a decrease of $0.4
million, or 4.8%, in service fees that was partially offset by an
increase of $0.3 million, or 11.6%, in trust and investment
management fee income.
Non-interest Expenses
Non-interest expenses increased $3.5 million, or 11.2%, from
$31.5 million in the third quarter of 2022 to $35.0 million in the
third quarter of 2023. This increase was largely due to an increase
in other expenses of $1.2 million and an increase in salaries and
employee benefits of $0.9 million due to the acquisition of
Citizens ($0.5 million) and salary adjustments. In addition,
bankcard expenses increased $0.8 million and FDIC insurance
expenses increased $0.5 million.
Balance Sheet Trends
Gross loans increased $85.3 million (2.2%) from June 30, 2023 to
$4.01 billion at September 30, 2023. Commercial real estate loans
increased $48.0 million (3.1%) and residential real estate loans
increased $21.7 million (1.2%) during the quarter ended September
30, 2023. In addition, home equity loans increased $8.6 million
(5.7%) and commercial and industrial loans increased $6.8 million
(1.6%).
Period-end deposit balances decreased $69.9 million from June
30, 2023, to September 30, 2023. Total average depository balances
decreased $116.8 million, or 2.3%, from the quarter ended June 30,
2023 to the quarter ended September 30, 2023. Average
noninterest-bearing demand deposit balances decreased $60.5
million, average savings deposit balances decreased $51.4 million,
and interest-bearing demand deposit balances decreased $27.6
million. These decreases were partially offset by an increase in
average time balances of $22.7 million.
Income Tax Expense
The Company’s effective income tax rate for the third quarter of
2023 was 21.1% compared to 19.8% for the year ended December 31,
2022 and 21.3% for the quarter ended September 30, 2022.
Capitalization and Liquidity
The Company’s loan to deposit ratio was 81.0% and its loan to
asset ratio was 66.0% at September 30, 2023. The Company maintained
investment securities totaling 22.8% of assets as of the same date.
The Company’s deposit mix is weighted heavily toward checking and
saving accounts, which fund 64.8% of assets at September 30, 2023.
Time deposits fund 16.6% of assets at September 30, 2023, with only
11.7% 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. As of September 30, 2023, City
National had the capacity to borrow an additional $1.8 billion from
these existing borrowing facilities. In addition, $764.7 million of
City National’s investment securities were unpledged at September
30, 2023.
The Company continues to be strongly capitalized with tangible
equity of $447 million at September 30, 2023. The Company’s
tangible equity ratio decreased slightly from 8.0% at December 31,
2022 to 7.6% at September 30, 2023. At September 30, 2023, City
National’s Leverage Ratio was 9.6%, its Common Equity Tier I ratio
was 14.7%, its Tier I Capital ratio was 14.7%, and its Total
Risk-Based Capital ratio was 15.3%. These regulatory capital ratios
are significantly above levels required to be considered “well
capitalized,” which is the highest possible regulatory
designation.
On September 27, 2023, the Board of Directors of the Company
approved a quarterly cash dividend of $0.715 per share payable
October 31, 2023, to shareholders of record as of October 13, 2023.
This represents a 10.0% increase from the $0.65 per share dividend
paid on July 31, 2023. During the quarter ended September 30, 2023,
the Company repurchased 109,000 common shares at a weighted average
price of $89.33 per share as part of a one million share repurchase
plan authorized by the Board of Directors in May 2022. As of
September 30, 2023, the Company could repurchase 220,000 additional
shares under the current program.
City National operates 99 branches across West Virginia,
Kentucky, Virginia, and Ohio. On October 20, 2023, City National
closed one of the two branches located in Nicholasville, Kentucky
due to the proximity (less than one mile) from an existing City
National branch.
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 September 30, 2023 Form 10-Q. The
Company will continue to evaluate the impact of any subsequent
events on the preliminary September 30, 2023 results and will
adjust the amounts if necessary.
CITY HOLDING COMPANY AND SUBSIDIARIES Financial
Highlights (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
September 30,
2023
September 30,
2022
Earnings Net Interest Income (fully taxable
equivalent)
$
55,855
$
55,757
$
53,767
$
52,381
$
49,108
$
165,379
$
128,961
Net Income available to common shareholders
29,839
32,733
24,341
30,672
27,374
86,913
71,408
Per Share Data Earnings per share available to common
shareholders: Basic
$
1.98
$
2.16
$
1.63
$
2.06
$
1.84
$
5.78
$
4.75
Diluted
1.98
2.16
1.63
2.05
1.83
5.77
4.75
Weighted average number of shares (in thousands): Basic
14,922
14,994
14,818
14,756
14,776
14,906
14,878
Diluted
14,945
15,012
14,844
14,785
14,800
14,928
14,901
Period-end number of shares (in thousands)
14,901
15,007
15,260
14,788
14,856
14,901
14,856
Cash dividends declared
$
0.72
$
0.65
$
0.65
$
0.65
$
0.65
$
2.02
$
1.85
Book value per share (period-end)
$
40.94
$
42.39
$
42.66
$
39.08
$
36.91
$
40.94
$
36.91
Tangible book value per share (period-end)
29.98
31.50
31.91
31.25
29.09
29.98
29.09
Market data: High closing price
$
99.49
$
97.92
$
100.27
$
101.94
$
90.24
$
100.27
$
90.24
Low closing price
87.51
83.57
89.17
89.32
78.40
83.57
73.88
Period-end closing price
90.35
89.99
90.88
93.09
88.69
90.35
88.69
Average daily volume (in thousands)
62
80
84
75
58
76
68
Treasury share activity: Treasury shares repurchased (in thousands)
109
269
218
69
9
597
255
Average treasury share repurchase price
$
89.33
$
88.93
$
92.10
$
93.12
$
80.24
$
90.16
$
78.36
Key Ratios (percent) Return on average assets
1.94
%
2.12
%
1.63
%
2.08
%
1.83
%
1.91
%
1.59
%
Return on average tangible equity
24.1
%
27.4
%
19.9
%
27.3
%
21.8
%
23.9
%
18.3
%
Yield on interest earning assets
5.08
%
4.87
%
4.66
%
4.23
%
3.72
%
4.87
%
3.27
%
Cost of interest bearing liabilities
1.46
%
1.22
%
0.86
%
0.48
%
0.21
%
1.18
%
0.18
%
Net Interest Margin
4.03
%
4.00
%
4.05
%
3.89
%
3.57
%
4.02
%
3.14
%
Non-interest income as a percent of total revenue
24.6
%
27.1
%
24.7
%
26.5
%
27.2
%
25.5
%
29.5
%
Efficiency Ratio
46.4
%
44.6
%
45.7
%
45.3
%
46.3
%
45.6
%
49.2
%
Price/Earnings Ratio (a)
11.40
10.40
13.95
11.30
12.08
11.73
13.99
Capital (period-end) Average Shareholders' Equity to
Average Assets
10.73
%
10.38
%
10.31
%
9.57
%
10.32
%
Tangible equity to tangible assets
7.55
%
7.90
%
8.05
%
8.02
%
7.41
%
Consolidated City Holding Company risk based capital ratios (b):
CET I
15.36
%
15.47
%
15.64
%
16.23
%
15.82
%
Tier I
15.36
%
15.47
%
15.64
%
16.23
%
15.82
%
Total
15.89
%
16.01
%
16.18
%
16.62
%
16.22
%
Leverage
10.05
%
9.80
%
10.20
%
10.01
%
9.74
%
City National Bank risk based capital ratios (b): CET I
14.73
%
14.82
%
14.08
%
13.88
%
14.68
%
Tier I
14.73
%
14.82
%
14.08
%
13.88
%
14.68
%
Total
15.27
%
15.36
%
14.63
%
14.28
%
15.07
%
Leverage
9.61
%
9.36
%
9.18
%
8.55
%
9.05
%
Other (period-end) Branches
99
99
99
94
94
FTE
966
963
958
909
903
Assets per FTE (in thousands)
$
6,291
$
6,383
$
6,483
$
6,467
$
6,588
Deposits per FTE (in thousands)
5,120
5,208
5,362
5,357
5,492
(a) The price/earnings ratio is computed based on annualized
quarterly earnings. (b) September 30, 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
Nine Months Ended
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
September 30,
2023
September 30,
2022
Interest Income Interest and fees on loans
$
55,582
$
52,352
$
47,004
$
42,963
$
38,493
$
154,939
$
103,575
Interest on investment securities: Taxable
12,432
11,794
11,773
11,119
9,556
35,999
23,327
Tax-exempt
910
950
1,162
1,262
1,228
3,022
3,650
Interest on deposits in depository institutions
1,265
2,585
1,591
1,244
1,530
5,440
2,549
Total Interest Income
70,189
67,681
61,530
56,588
50,807
199,400
133,101
Interest Expense Interest on deposits
10,551
8,567
5,690
3,010
1,585
24,808
4,433
Interest on short-term borrowings
2,990
2,963
2,381
1,533
440
8,334
677
Interest on long-term debt
1,034
649
-
-
-
1,683
-
Total Interest Expense
14,575
12,179
8,071
4,543
2,025
34,825
5,110
Net Interest Income
55,614
55,502
53,459
52,045
48,782
164,575
127,991
Provision for (Recovery of) credit losses
200
425
2,918
500
730
3,543
(26
)
Net Interest Income After Provision for (Recovery of) Credit
Losses
55,414
55,077
50,541
51,545
48,052
161,032
128,017
Non-Interest Income Net (losses) gains on sale of
investment securities
(730
)
-
773
4
-
43
-
Unrealized (losses) gains recognized on equity securities still
held
-
(294
)
361
(262
)
1
67
(1,322
)
Service charges
7,124
6,906
6,563
7,056
7,487
20,593
21,281
Bankcard revenue
7,058
7,190
6,603
6,791
7,052
20,851
20,558
Trust and investment management fee income
2,409
2,339
2,252
2,343
2,158
7,000
6,455
Bank owned life insurance
807
3,208
804
1,813
754
4,819
3,746
Other income
742
952
1,326
791
792
3,020
2,825
Total Non-Interest Income
17,410
20,301
18,682
18,536
18,244
56,393
53,543
Non-Interest Expense Salaries and employee benefits
18,289
18,429
17,673
17,148
17,398
54,391
49,386
Occupancy related expense
2,950
2,811
2,640
2,725
2,664
8,401
7,993
Equipment and software related expense
2,830
2,883
3,092
3,341
2,949
8,805
8,452
FDIC insurance expense
919
690
445
413
416
2,054
1,259
Advertising
790
974
760
802
854
2,524
2,603
Bankcard expenses
2,188
1,736
1,509
1,356
1,405
5,433
4,676
Postage, delivery, and statement mailings
668
596
647
597
578
1,911
1,765
Office supplies
457
591
420
441
466
1,468
1,303
Legal and professional fees
529
558
470
610
532
1,557
1,584
Telecommunications
568
623
606
627
651
1,797
1,988
Repossessed asset losses (gains), net of expenses
40
22
16
54
(3
)
78
4
Merger related expenses
2
-
5,645
268
-
5,647
-
Other expenses
4,798
4,848
4,700
4,203
3,591
14,346
10,701
Total Non-Interest Expense
35,028
34,761
38,623
32,585
31,501
108,412
91,714
Income Before Income Taxes
37,796
40,617
30,600
37,496
34,795
109,013
89,846
Income tax expense
7,957
7,884
6,259
6,824
7,421
22,100
18,438
Net Income Available to Common Shareholders
$
29,839
$
32,733
$
24,341
$
30,672
$
27,374
$
86,913
$
71,408
Distributed earnings allocated to common shareholders
$
10,554
$
9,668
$
9,833
$
9,521
$
9,564
$
29,744
$
27,220
Undistributed earnings allocated to common shareholders
19,004
22,774
14,294
20,857
17,555
56,356
43,509
Net earnings allocated to common shareholders
$
29,558
$
32,442
$
24,127
$
30,378
$
27,119
$
86,100
$
70,729
Average common shares outstanding
14,922
14,994
14,818
14,756
14,776
14,906
14,878
Shares for diluted earnings per share
14,945
15,012
14,844
14,785
14,800
14,928
14,901
Basic earnings per common share
$
1.98
$
2.16
$
1.63
$
2.06
$
1.84
$
5.78
$
4.75
Diluted earnings per common share
$
1.98
$
2.16
$
1.63
$
2.05
$
1.83
$
5.77
$
4.75
CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated
Balance Sheets ($ in 000s)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
Assets Cash and due from banks
$
62,085
$
66,350
$
69,804
$
68,333
$
65,051
Interest-bearing deposits in depository institutions
48,631
164,931
233,006
131,667
233,302
Cash and cash equivalents
110,716
231,281
302,810
200,000
298,353
Investment securities available-for-sale, at fair value
1,358,219
1,419,933
1,456,259
1,505,520
1,489,392
Other securities
29,022
29,262
24,728
23,807
24,372
Total investment securities
1,387,241
1,449,195
1,480,987
1,529,327
1,513,764
Gross loans
4,007,482
3,922,142
3,894,686
3,646,258
3,628,752
Allowance for credit losses
(23,128
)
(22,751
)
(22,724
)
(17,108
)
(17,011
)
Net loans
3,984,354
3,899,391
3,871,962
3,629,150
3,611,741
Bank owned life insurance
117,979
117,173
124,238
120,674
121,283
Premises and equipment, net
72,682
73,118
73,430
70,786
71,686
Accrued interest receivable
19,223
17,973
18,395
18,287
17,256
Net deferred tax assets
58,811
46,944
42,146
44,884
49,888
Goodwill and intangible assets
163,461
163,426
164,099
115,735
116,081
Other assets
161,659
148,333
132,715
149,263
147,716
Total Assets
$
6,076,126
$
6,146,834
$
6,210,782
$
5,878,106
$
5,947,768
Liabilities Deposits: Noninterest-bearing
$
1,333,474
$
1,373,106
$
1,420,990
$
1,351,415
$
1,429,281
Interest-bearing: Demand deposits
1,319,783
1,337,445
1,356,017
1,233,482
1,160,970
Savings deposits
1,282,642
1,343,571
1,397,523
1,396,869
1,427,785
Time deposits
1,009,235
960,941
962,235
888,100
939,769
Total deposits
4,945,134
5,015,063
5,136,765
4,869,866
4,957,805
Short-term borrowings Customer repurchase agreements
278,671
271,714
293,256
290,964
304,807
Long-term debt
100,000
100,000
-
-
-
Other liabilities
142,187
123,865
129,711
139,424
136,868
Total Liabilities
5,465,992
5,510,642
5,559,732
5,300,254
5,399,480
Stockholders' Equity Preferred stock
-
-
-
-
-
Common stock
47,619
47,619
47,619
47,619
47,619
Capital surplus
177,113
176,746
177,529
170,980
170,138
Retained earnings
763,425
744,248
721,727
706,696
685,657
Cost of common stock in treasury
(211,430
)
(201,973
)
(179,436
)
(215,955
)
(209,644
)
Accumulated other comprehensive (loss) income: Unrealized (loss)
gain on securities available-for-sale
(163,171
)
(127,026
)
(112,967
)
(128,066
)
(141,997
)
Underfunded pension liability
(3,422
)
(3,422
)
(3,422
)
(3,422
)
(3,485
)
Total Accumulated Other Comprehensive (Loss) Income
(166,593
)
(130,448
)
(116,389
)
(131,488
)
(145,482
)
Total Stockholders' Equity
610,134
636,192
651,050
577,852
548,288
Total Liabilities and Stockholders' Equity
$
6,076,126
$
6,146,834
$
6,210,782
$
5,878,106
$
5,947,768
Regulatory Capital Total CET 1 capital
$
615,798
$
605,661
$
606,675
$
598,068
$
582,213
Total tier 1 capital
615,798
605,661
606,675
598,068
582,213
Total risk-based capital
637,245
626,730
627,718
612,654
596,708
Total risk-weighted assets
4,009,798
3,913,870
3,878,994
3,685,207
3,679,511
CITY HOLDING COMPANY AND SUBSIDIARIES Loan
Portfolio (Unaudited) ($ in 000s)
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
Commercial and industrial
$
424,647
$
417,847
$
390,861
$
373,890
$
375,735
1-4 Family
135,226
123,701
119,017
116,192
109,710
Hotels
321,236
324,745
327,554
340,404
355,001
Multi-family
192,329
191,483
195,042
174,786
186,440
Non Residential Non-Owner Occupied
713,353
673,921
679,782
585,964
569,369
Non Residential Owner Occupied
222,544
222,852
223,096
174,961
177,673
Commercial real estate (1)
1,584,688
1,536,702
1,544,491
1,392,307
1,398,193
Residential real estate (2)
1,768,358
1,746,618
1,737,604
1,693,523
1,678,770
Home equity
159,630
151,012
151,341
134,317
130,837
Consumer
65,586
65,201
66,994
48,806
41,902
DDA overdrafts
4,573
4,762
3,395
3,415
3,315
Gross Loans
$
4,007,482
$
3,922,142
$
3,894,686
$
3,646,258
$
3,628,752
Construction loans included in: (1) - Commercial real estate
loans
$
2,533
$
3,361
$
4,715
$
4,130
$
4,125
(2) - Residential real estate loans
20,056
20,470
25,224
21,122
19,333
CITY HOLDING COMPANY AND SUBSIDIARIES Asset
Quality Information (Unaudited) ($ in 000s)
Three Months Ended
Nine Months Ended
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
September 30,
2023
September 30,
2022
Allowance for Credit Losses Balance at beginning of period
$
22,751
$
22,724
$
17,108
$
17,011
$
17,015
$
17,108
$
18,166
Charge-offs: Commercial and industrial
-
(69
)
-
(120
)
(408
)
(69
)
(442
)
Commercial real estate
(256
)
(117
)
(3
)
(31
)
-
(376
)
(24
)
Residential real estate
(88
)
(20
)
(32
)
(66
)
(93
)
(140
)
(199
)
Home equity
(112
)
(200
)
(67
)
(189
)
(71
)
(379
)
(90
)
Consumer
(10
)
(109
)
(62
)
(15
)
(16
)
(181
)
(48
)
DDA overdrafts
(422
)
(357
)
(450
)
(670
)
(719
)
(1,229
)
(1,954
)
Total charge-offs
(888
)
(872
)
(614
)
(1,091
)
(1,307
)
(2,374
)
(2,757
)
Recoveries: Commercial and industrial
597
86
83
94
149
766
240
Commercial real estate
74
28
158
120
9
260
87
Residential real estate
28
5
10
49
1
43
50
Home equity
18
12
4
34
2
34
22
Consumer
27
28
23
31
29
78
76
DDA overdrafts
321
315
398
360
383
1,034
1,153
Total recoveries
1,065
474
676
688
573
2,215
1,628
Net recoveries (charge-offs)
177
(398
)
62
(403
)
(734
)
(159
)
(1,129
)
Provision for (recovery of) credit losses
200
425
2,918
500
730
3,543
(26
)
PCD Loan Reserves
-
-
2,811
-
-
2,811
-
Adoption of ASU 2022-02
-
-
(175
)
-
-
(175
)
-
Balance at end of period
$
23,128
$
22,751
$
22,724
$
17,108
$
17,011
$
23,128
$
17,011
Loans outstanding
$
4,007,482
$
3,922,142
$
3,894,686
$
3,646,258
$
3,628,752
Allowance as a percent of loans outstanding
0.58
%
0.58
%
0.58
%
0.47
%
0.47
%
Allowance as a percent of non-performing loans
440.1
%
405.5
%
400.1
%
317.3
%
320.5
%
Average loans outstanding
$
3,956,871
$
3,896,284
$
3,700,194
$
3,648,996
$
3,596,523
$
3,852,057
$
3,561,463
Net charge-offs (annualized) as a percent of average loans
outstanding
(0.02
)%
0.04
%
(0.01
)%
0.04
%
0.08
%
0.01
%
0.04
%
CITY HOLDING COMPANY AND SUBSIDIARIES Asset
Quality Information, continued (Unaudited) ($ in 000s)
September 30,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
Nonaccrual Loans Residential real estate
$
2,839
$
2,774
$
2,700
$
1,969
$
2,089
Home equity
75
24
35
55
140
Commercial and industrial
716
741
994
1,015
785
Commercial real estate
1,355
1,821
1,931
2,166
2,293
Consumer
1
36
19
-
-
Total nonaccrual loans
4,986
5,396
5,679
5,205
5,307
Accruing loans past due 90 days or more
269
215
-
187
-
Total non-performing loans
5,255
5,611
5,679
5,392
5,307
Other real estate owned
720
874
843
909
1,071
Total non-performing assets
$
5,975
$
6,485
$
6,522
$
6,301
$
6,378
Non-performing assets as a percent of loans and other real
estate owned
0.15
%
0.17
%
0.17
%
0.17
%
0.18
%
Past Due Loans Residential real estate
$
6,247
$
5,884
$
4,783
$
7,091
$
3,452
Home equity
1,278
784
551
650
521
Commercial and industrial
568
142
98
234
221
Commercial real estate
1,478
238
148
710
221
Consumer
84
57
3
100
27
DDA overdrafts
398
341
276
391
561
Total past due loans
$
10,053
$
7,446
$
5,859
$
9,176
$
5,003
Total past due loans as a percent of loans outstanding
0.25
%
0.19
%
0.15
%
0.25
%
0.14
%
CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated
Average Balance Sheets, Yields, and Rates (Unaudited) ($ in
000s) Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
Average Yield/ Average Yield/
Average Yield/ Balance Interest
Rate Balance Interest Rate
Balance Interest Rate Assets:
Loan portfolio (1): Residential real estate (2)
$
1,910,876
$
22,702
4.71
%
$
1,894,269
$
21,702
4.60
%
$
1,792,365
$
17,718
3.92
%
Commercial, financial, and agriculture (2)
1,975,463
31,743
6.38
%
1,933,238
29,754
6.17
%
1,759,567
20,092
4.53
%
Installment loans to individuals (2), (3)
70,532
1,138
6.40
%
68,777
898
5.24
%
44,591
683
6.08
%
Total loans
3,956,871
55,583
5.57
%
3,896,284
52,354
5.39
%
3,596,523
38,493
4.25
%
Securities: Taxable
1,277,265
12,432
3.86
%
1,301,063
11,794
3.64
%
1,359,207
9,557
2.79
%
Tax-exempt (4)
170,806
1,152
2.68
%
174,410
1,203
2.77
%
215,219
1,555
2.87
%
Total securities
1,448,071
13,584
3.72
%
1,475,473
12,997
3.53
%
1,574,426
11,112
2.80
%
Deposits in depository institutions
90,994
1,265
5.52
%
224,064
2,585
4.63
%
289,460
1,529
2.10
%
Total interest-earning assets
5,495,936
70,432
5.08
%
5,595,821
67,936
4.87
%
5,460,409
51,134
3.72
%
Cash and due from banks
69,348
71,949
81,202
Premises and equipment, net
73,004
73,450
72,196
Goodwill and intangible assets
163,602
163,847
116,297
Other assets
332,551
313,925
278,527
Less: Allowance for credit losses
(23,558
)
(23,046
)
(17,224
)
Total assets
$
6,110,883
$
6,195,946
$
5,991,407
Liabilities: Interest-bearing demand deposits
$
1,300,936
$
3,068
0.94
%
$
1,328,520
$
2,773
0.84
%
$
1,151,122
$
272
0.09
%
Savings deposits
1,314,484
2,319
0.70
%
1,365,894
1,942
0.57
%
1,431,591
358
0.10
%
Time deposits (2)
985,038
5,163
2.08
%
962,299
3,852
1.61
%
964,447
956
0.39
%
Customer repurchase agreements
272,558
2,990
4.35
%
294,255
2,963
4.04
%
270,310
440
0.65
%
Long-term debt
100,000
1,035
4.11
%
65,934
649
3.95
%
-
-
-
Total interest-bearing liabilities
3,973,016
14,575
1.46
%
4,016,902
12,179
1.22
%
3,817,470
2,026
0.21
%
Noninterest-bearing demand deposits
1,359,268
1,419,771
1,455,123
Other liabilities
123,137
116,083
100,303
Stockholders' equity
655,462
643,190
618,511
Total liabilities and stockholders' equity
$
6,110,883
$
6,195,946
$
5,991,407
Net interest income
$
55,857
$
55,757
$
49,108
Net yield on earning assets
4.03
%
4.00
%
3.57
%
(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
$
254
$
393
$
308
(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
$
47
$
78
$
64
Commercial, financial, and agriculture
720
709
103
Installment loans to individuals
4
8
7
Time deposits
240
154
21
$
1,011
$
949
$
195
(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, 2023 September 30,
2022 Average Yield/ Average Yield/
Balance Interest Rate Balance
Interest Rate Assets: Loan portfolio
(1): Residential real estate (2)
$
1,882,397
$
64,410
4.57
%
$
1,728,557
$
49,610
3.84
%
Commercial, financial, and agriculture (2)
1,904,001
87,745
6.16
%
1,788,784
52,044
3.89
%
Installment loans to individuals (2), (3)
65,659
2,784
5.67
%
44,122
1,921
5.82
%
Total loans
3,852,057
154,939
5.38
%
3,561,463
103,575
3.89
%
Securities: Taxable
1,300,373
35,999
3.70
%
1,279,086
23,327
2.44
%
Tax-exempt (4)
182,858
3,826
2.80
%
221,035
4,620
2.79
%
Total securities
1,483,231
39,825
3.59
%
1,500,121
27,947
2.49
%
Deposits in depository institutions
166,379
5,440
4.37
%
422,714
2,549
0.81
%
Total interest-earning assets
5,501,667
200,204
4.87
%
5,484,298
134,071
3.27
%
Cash and due from banks
69,735
95,105
Premises and equipment, net
72,631
72,964
Goodwill and intangible assets
150,808
116,643
Other assets
324,658
251,071
Less: Allowance for credit losses
(21,602
)
(17,807
)
Total assets
$
6,097,897
$
6,002,274
Liabilities: Interest-bearing demand deposits
$
1,288,387
$
7,582
0.79
%
$
1,149,899
$
550
0.06
%
Savings deposits
1,352,005
5,610
0.55
%
1,415,563
715
0.07
%
Time deposits (2)
950,276
11,616
1.63
%
1,005,356
3,168
0.42
%
Customer repurchase agreements
282,857
8,334
3.94
%
278,211
677
0.33
%
Long-term debt
55,678
1,683
4.04
%
-
-
-
Total interest-bearing liabilities
3,929,203
34,825
1.18
%
3,849,029
5,110
0.18
%
Noninterest-bearing demand deposits
1,407,922
1,429,887
Other liabilities
122,854
86,585
Stockholders' equity
637,918
636,773
Total liabilities and stockholders' equity
$
6,097,897
$
6,002,274
Net interest income
$
165,379
$
128,961
Net yield on earning assets
4.02
%
3.14
%
(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
$
1,165
$
609
(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
$
165
$
231
Commercial, financial, and agriculture
1,575
507
Installment loans to individuals
15
41
Time deposits
403
62
$
2,158
$
841
(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,
2023
June 30,
2023
March 31,
2023
December 31,
2022
September 30,
2022
September 30,
2023
September 30,
2022
Net Interest Income/Margin Net interest income ("GAAP")
$
55,614
$
55,502
$
53,459
$
52,045
$
48,782
$
164,575
$
127,991
Taxable equivalent adjustment
243
255
308
336
326
804
970
Net interest income, fully taxable equivalent
$
55,857
$
55,757
$
53,767
$
52,381
$
49,108
$
165,379
$
128,961
Average interest earning assets
$
5,495,936
$
5,595,821
$
5,387,326
$
5,338,507
$
5,460,409
$
5,501,667
$
5,484,298
Net Interest Margin
4.03
%
4.00
%
4.05
%
3.89
%
3.57
%
4.02
%
3.14
%
Accretion related to fair value adjustments
(0.07
)%
(0.07
)%
(0.02
)%
(0.02
)%
(0.01
)%
(0.05
)%
(0.02
)%
Net Interest Margin (excluding accretion)
3.96
%
3.93
%
4.03
%
3.87
%
3.56
%
3.97
%
3.12
%
Tangible Equity Ratio (period end) Equity to assets
("GAAP")
10.04
%
10.35
%
10.48
%
9.83
%
9.22
%
Effect of goodwill and other intangibles, net
(2.49
)%
(2.45
)%
(2.43
)%
(1.81
)%
(1.81
)%
Tangible common equity to tangible assets
7.55
%
7.90
%
8.05
%
8.02
%
7.41
%
Return on average tangible equity ("GAAP")
24.1
%
27.4
%
19.9
%
27.3
%
21.8
%
23.9
%
18.3
%
Impact of merger related expenses
-
-
3.6
%
-
-
1.2
%
-
Impact of merger related provision
-
-
1.3
%
-
-
0.4
%
-
Return on tangible equity, excluding merger related expenses and
provision
24.1
%
27.4
%
24.8
%
27.3
%
21.8
%
25.5
%
18.3
%
Return on assets ("GAAP")
1.94
%
2.12
%
1.63
%
2.08
%
1.83
%
1.91
%
1.59
%
Impact of merger related expenses
-
-
0.30
%
-
-
0.10
%
-
Impact of merger related provision
-
-
0.10
%
-
-
0.03
%
-
Return on assets, excluding merger related expenses and provision
1.94
%
2.12
%
2.04
%
2.08
%
1.83
%
2.04
%
1.59
%
Commercial Loan Information (period
end) Commercial Sector Total % of Total
Loans Average DSC Average LTV Natural Gas
Extraction
$
22,768
0.57
%
3.68
N/A
Natural Gas Distribution
22,048
0.55
%
2.61
N/A
Masonry Contractors
27,675
0.69
%
1.13
84
%
Sheet Metal Work Manufacturing
24,974
0.62
%
1.57
68
%
Beer & Ale Merchant Wholesalers
25,981
0.65
%
3.28
N/A
Gasoline Stations with Convenience Stores
47,215
1.18
%
4.19
66
%
Lessors of Residential Buildings & Dwellings
436,789
10.92
%
1.89
66
%
1-4 Family
125,929
3.15
%
2.97
68
%
Multi-Family
182,785
4.57
%
1.84
66
%
Lessors of Nonresidential Buildings
567,746
14.20
%
1.70
65
%
Office Buildings
44,129
1.10
%
1.64
63
%
Lessors of Mini-Warehouses & Self-Storage Units
40,769
1.02
%
1.62
61
%
Assisted Living Facilities
27,955
0.70
%
1.38
57
%
Hotels & Motels
321,623
8.04
%
1.43
62
%
Average Balance Median Balance Commercial
Loans
$
439
$
92
Commercial Real Estate Loans
493
118
CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued (Unaudited) ($ in
000s, except per share data) Estimated
Uninsured Deposits by Deposit Type
September 30,
2023
June 30,
2023
Noninterest-Bearing Demand Deposits
17
%
17
%
Interest-Bearing Deposits Demand Deposits
11
%
7
%
Savings Deposits
11
%
11
%
Time Deposits
14
%
14
%
Total Deposits
13
%
12
%
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 YTD*
24,518
4,450
1.8
%
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/20231020891918/en/
David L. Bumgarner, Executive Vice President and Chief Financial
Officer (304) 769-1169
City (NASDAQ:CHCO)
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부터 4월(4) 2024 으로 5월(5) 2024
City (NASDAQ:CHCO)
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