City Holding Company Announces Quarterly Results

City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.3 billion bank holding company headquartered in Charleston, West Virginia, today announced net income of $29.5 million and diluted earnings of $1.97 per share for the quarter ended March 31, 2024. For the quarter ended March 31, 2024, the Company achieved a return on assets of 1.92% and a return on tangible equity of 22.7%.

Net Interest Income

The Company’s net interest income decreased approximately $0.2 million, or 0.4%, from $54.7 million during the fourth quarter of 2023 to $54.4 million during the first quarter of 2024. The Company’s tax equivalent net interest income decreased approximately $0.2 million, or 0.4%, from $54.9 million for the fourth quarter of 2023 to $54.6 million for the first quarter of 2024. Due to an increase in the cost of interest bearing liabilities (20 basis points), net interest income declined $1.7 million. Additionally, lower yields on investment securities lowered net interest income by $0.4 million and an increase in the average balance of interest bearing liabilities ($48.4 million) decreased net interest income by $0.2 million. These decreases were partially offset by an increase in average loan balances of $46.6 million, which increased net interest income by $0.7 million, an increase of 15 basis points on loans yields which increased net interest income by $0.7 million, and an increase of 23 basis points on deposits in depository institutions yield which increased net interest income by $0.6 million. The Company’s reported net interest margin declined from 3.98% for the fourth quarter of 2023 to 3.95% for the first quarter of 2024.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned increased from 0.21%, or $8.6 million, at December 31, 2023 to 0.28%, or $11.5 million, at March 31, 2024. Total past due loans decreased from $10.9 million, or 0.27% of total loans outstanding, at December 31, 2023, to $6.7 million, or 0.16% of total loans outstanding, at March 31, 2024.

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 $0.2 million in the first quarter of 2024, compared to a provision for credit losses of $2.9 million for the comparable period in 2023, and a recovery of credit losses of $0.3 million for the fourth quarter of 2023. The recovery of credit losses was primarily related to a decline in loan balances from the fourth quarter of 2023 and a reduction in the loss rate of residential real estate loans that were partially offset by net charge-offs during the first quarter of 2024.

Non-interest Income

Non-interest income was $17.9 million during the quarter ended March 31, 2024, as compared to $18.7 million during the quarter ended March 31, 2023. During the first quarter of 2024, the Company reported $0.2 million of unrealized fair value gains on the Company’s equity securities compared to $0.8 million of realized gains from the sale of investment securities and $0.4 million of unrealized fair value gains on the Company’s equity securities during the first quarter of 2023.

Exclusive of these items, non-interest income increased $0.6 million, or 2.9%, from $17.5 million for the first quarter of 2023 to $18.1 million for the first quarter of 2024. This increase was largely attributable to an increase of $0.5 million, or 7.2%, in service charges, an increase of $0.4 million, or 16.4%, in trust and investment management fee income, and a $0.2 million, or 3.0%, increase in bankcard revenues. These increases were partially offset by a decrease in other income of $0.6 million.

Non-interest Expenses

Non-interest expenses decreased $2.7 million, or 7.1%, from $38.6 million in the first quarter of 2023 to $35.9 million in the first quarter of 2024. During the quarter ended March 31, 2023, the Company recognized $5.6 million of acquisition and integration expenses (included in other expenses) associated with the completed acquisition of Citizens Commerce Bancshares, Inc. (“Citizens”) and its principal banking subsidiary, Citizens Commerce Bank, on March 10, 2023. Excluding these expenses, non-interest expenses increased $2.9 million from $33.0 million in the quarter ended March 31, 2023 to $35.9 million in the quarter ended March 31, 2024. This increase was largely due to an increase in salaries and employee benefits of $1.2 million due to salary adjustments and increased health insurance costs. In addition, bankcard expenses increased $0.5 million, other expenses increased $0.5 million, and FDIC insurance expense increased $0.3 million.

Balance Sheet Trends

Loans declined $34.1 million (0.8%) from December 31, 2023 to $4.09 billion at March 31, 2024. Commercial and industrial loans decreased $19.2 million and commercial real estate loans decreased $14.6 million during the quarter ended March 31, 2024. These decreases were partially offset by an increase in home equity loans of $4.1 million (2.5%).

Period-end deposit balances increased $121.5 million from December 31, 2023, to March 31, 2024. Total average depository balances remained flat from the quarter ended December 31, 2023 to the quarter ended March 31, 2024, at $4.93 billion. Average savings deposit balances decreased $20.5 million, average interest-bearing demand deposit balances decreased $15.8 million, and average noninterest-bearing demand deposit balances decreased $11.5 million. These decreases were essentially offset by an increase in average time deposit balances of $47.2 million.

Income Tax Expense

The Company’s effective income tax rate for the first quarter of 2024 was 19.5% compared to 20.1% for the year ended December 31, 2023, and 20.5%, for the quarter ended March 31, 2023.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 80.9% and the loan to asset ratio was 64.8% at March 31, 2024. The Company maintained investment securities totaling 21.8% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 62.6% of assets at March 31, 2024. Time deposits fund 17.4% of assets at March 31, 2024, with only 13.0% 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 March 31, 2024, City National had the capacity to borrow an additional $1.5 billion from these existing borrowing facilities. In addition, approximately $660 million of City National’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $720 million of City National’s investment securities unpledged at March 31, 2024.

The Company continues to be strongly capitalized with tangible equity of $520 million at March 31, 2024. The Company’s tangible equity ratio declined slightly from 8.6% at December 31, 2023 to 8.5% at March 31, 2024. At March 31, 2024, City National’s Leverage Ratio was 9.4%, its Common Equity Tier I ratio was 14.6%, its Tier I Capital ratio was 14.6%, and its Total Risk-Based Capital ratio was 15.1%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On March 27, 2024, the Board of Directors of the Company approved a quarterly cash dividend of $0.715 per share payable April 30, 2024, to shareholders of record as of April 15, 2024. On January 31, 2024, the Company announced that the Board of Directors authorized the Company to buy back up to 1,000,000 shares of its common stock (approximately 7% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders (the “2024 Program”). No time limit was placed on the duration of the share repurchase program. As part of this authorization, the Company terminated its previous repurchase program that was approved in May 2022. The Company had repurchased 849,681 shares under the 2022 program. During the quarter ended March 31, 2024, the Company repurchased 36,000 common shares at a weighted average price of $100.24 per share as part of 2024 Program. As of March 31, 2024, the Company could repurchase 964,000 additional shares under the 2024 program.

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

On April 8, 2024, City National announced that it had been ranked #1 in customer satisfaction for consumer banking in the North Central Region in the J.D. Power 2024 U.S. Retail Banking Satisfaction Study. City National has claimed the top honor in five of the last seven years and outscored all other banks in West Virginia, Kentucky, Ohio, Indiana, and Michigan.

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

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
	Three Months Ended
	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Earnings
Net Interest Income (fully taxable equivalent)	$	54,647		$	54,889		$	55,855		$	55,757		$	53,767
Net Income available to common shareholders		29,523			27,452			29,839			32,733			24,341
Per Share Data
Earnings per share available to common shareholders:
Basic	$	1.98		$	1.84		$	1.98		$	2.16		$	1.63
Diluted		1.97			1.84			1.98			2.16			1.63
Weighted average number of shares (in thousands):
Basic		14,795			14,758			14,922			14,994			14,818
Diluted		14,819			14,785			14,945			15,012			14,844
Period-end number of shares (in thousands)		14,825			14,832			14,901			15,007			15,260
Cash dividends declared	$	0.72		$	0.72		$	0.72		$	0.65		$	0.65
Book value per share (period-end)	$	46.02		$	45.65		$	40.94		$	42.39		$	42.66
Tangible book value per share (period-end)		35.10			34.69			29.98			31.50			31.91
Market data:
High closing price	$	111.40		$	115.77		$	99.49		$	97.92		$	100.27
Low closing price		99.28			87.43			87.51			83.57			89.17
Period-end closing price		104.22			110.26			90.35			89.99			90.88
Average daily volume (in thousands)		63			62			62			80			84
Treasury share activity:
Treasury shares repurchased (in thousands)		36			70			109			269			218
Average treasury share repurchase price	$	100.24		$	90.61		$	89.33		$	88.93		$	92.10
Key Ratios (percent)
Return on average assets		1.92	%		1.78	%		1.94	%		2.12	%		1.63	%
Return on average tangible equity		22.7	%		23.5	%		24.1	%		27.4	%		19.9	%
Yield on interest earning assets		5.33	%		5.23	%		5.08	%		4.87	%		4.66	%
Cost of interest bearing liabilities		1.90	%		1.70	%		1.46	%		1.22	%		0.86	%
Net Interest Margin		3.95	%		3.98	%		4.03	%		4.00	%		4.05	%
Non-interest income as a percent of total revenue		25.0	%		25.6	%		24.6	%		27.1	%		24.7	%
Efficiency Ratio		48.5	%		47.4	%		46.4	%		44.6	%		45.7	%
Price/Earnings Ratio (a)		13.17			14.95			11.40			10.40			13.95
Capital (period-end)
Average Shareholders' Equity to Average Assets		11.09	%		10.27	%		10.73	%		10.38	%		10.31	%
Tangible equity to tangible assets		8.46	%		8.57	%		7.55	%		7.90	%		8.05	%
Consolidated City Holding Company risk based capital ratios (b):
CET I		16.15	%		15.70	%		15.36	%		15.47	%		15.64	%
Tier I		16.15	%		15.70	%		15.36	%		15.47	%		15.64	%
Total		16.69	%		16.23	%		15.89	%		16.01	%		16.18	%
Leverage		10.45	%		10.23	%		10.05	%		9.80	%		10.20	%
City National Bank risk based capital ratios (b):
CET I		14.60	%		13.79	%		14.73	%		14.82	%		14.08	%
Tier I		14.60	%		13.79	%		14.73	%		14.82	%		14.08	%
Total		15.14	%		14.32	%		15.27	%		15.36	%		14.63	%
Leverage		9.42	%		8.94	%		9.61	%		9.36	%		9.18	%
Other (period-end)
Branches		97			98			99			99			99
FTE		953			957			966			963			958
Assets per FTE (in thousands)	$	6,625		$	6,447		$	6,291		$	6,383		$	6,483
Deposits per FTE (in thousands)		5,304			5,157			5,120			5,208			5,362
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) March 31, 2024 risk-based capital ratios are estimated.

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
	Three Months Ended
	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Interest Income
Interest and fees on loans	$	59,128		$	57,755		$	55,582		$	52,352		$	47,004
Interest on investment securities:
Taxable		12,040			12,336			12,432			11,794			11,773
Tax-exempt		830			832			910			950			1,162
Interest on deposits in depository institutions		1,570			941			1,265			2,585			1,591
Total Interest Income		73,568			71,864			70,189			67,681			61,530
Interest Expense
Interest on deposits		14,097			12,479			10,551			8,567			5,690
Interest on short-term borrowings		3,621			3,693			2,990			2,963			2,381
Interest on FHLB long-term advances		1,423			1,026			1,034			649			-
Total Interest Expense		19,141			17,198			14,575			12,179			8,071
Net Interest Income		54,427			54,666			55,614			55,502			53,459
(Recovery of) Provision for credit losses		(180	)		(300	)		200			425			2,918
Net Interest Income After (Recovery of) Provision for Credit Losses		54,607			54,966			55,414			55,077			50,541
Non-Interest Income
Net (losses) gains on sale of investment securities		(1	)		(4,951	)		(730	)		-			773
Unrealized (losses)/gains recognized on equity securities still held		(152	)		365			-			(294	)		361
Service charges		7,035			7,158			7,124			6,906			6,563
Bankcard revenue		6,800			7,109			7,058			7,190			6,603
Trust and investment management fee income		2,623			2,563			2,409			2,339			2,252
Bank owned life insurance		927			1,218			807			3,208			804
Other income		716			774			742			952			1,326
Total Non-Interest Income		17,948			14,236			17,410			20,301			18,682
Non-Interest Expense
Salaries and employee benefits		18,878			18,772			18,289			18,429			17,673
Occupancy related expense		2,840			2,917			2,950			2,811			2,640
Equipment and software related expense		2,929			2,824			2,830			2,883			3,092
FDIC insurance expense		711			868			919			690			445
Advertising		867			588			790			974			760
Bankcard expenses		2,039			2,014			2,188			1,736			1,509
Postage, delivery, and statement mailings		666			615			668			596			647
Office supplies		453			477			457			591			420
Legal and professional fees		482			478			529			558			470
Telecommunications		600			614			568			623			606
Repossessed asset losses/(gains), net of expenses		229			(50	)		40			22			16
Other expenses		5,206			4,992			4,800			4,848			10,345
Total Non-Interest Expense		35,900			35,109			35,028			34,761			38,623
Income Before Income Taxes		36,655			34,093			37,796			40,617			30,600
Income tax expense		7,132			6,641			7,957			7,884			6,259
Net Income Available to Common Shareholders	$	29,523		$	27,452		$	29,839		$	32,733		$	24,341
Distributed earnings allocated to common shareholders	$	10,505		$	10,508		$	10,554		$	9,668		$	9,833
Undistributed earnings allocated to common shareholders		18,757			16,696			19,004			22,774			14,294
Net earnings allocated to common shareholders	$	29,262		$	27,204		$	29,558		$	32,442		$	24,127
Average common shares outstanding		14,795			14,758			14,922			14,994			14,818
Shares for diluted earnings per share		14,819			14,785			14,945			15,012			14,844
Basic earnings per common share	$	1.98		$	1.84		$	1.98		$	2.16		$	1.63
Diluted earnings per common share	$	1.97		$	1.84		$	1.98		$	2.16		$	1.63

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Assets
Cash and due from banks	$	121,853		$	123,033		$	67,402		$	69,622		$	76,223
Interest-bearing deposits in depository institutions		196,829			33,243			43,314			161,659			226,587
Cash and cash equivalents		318,682			156,276			110,716			231,281			302,810
Investment securities available-for-sale, at fair value		1,347,657			1,338,137			1,358,219			1,419,933			1,456,259
Other securities		30,681			30,966			29,022			29,262			24,728
Total investment securities		1,378,338			1,369,103			1,387,241			1,449,195			1,480,987
Gross loans		4,091,788			4,125,923			4,007,482			3,922,142			3,894,686
Allowance for credit losses		(22,310	)		(22,745	)		(23,128	)		(22,751	)		(22,724	)
Net loans		4,069,478			4,103,178			3,984,354			3,899,391			3,871,962
Bank owned life insurance		118,875			118,122			117,979			117,173			124,238
Premises and equipment, net		71,623			72,146			72,682			73,118			73,430
Accrued interest receivable		21,759			20,290			19,223			17,973			18,395
Net deferred tax assets		43,969			42,216			58,811			46,944			42,146
Goodwill and intangible assets		161,832			162,568			163,461			163,426			164,099
Other assets		129,627			124,153			161,659			148,333			132,715
Total Assets	$	6,314,183		$	6,168,052		$	6,076,126		$	6,146,834		$	6,210,782
Liabilities
Deposits:
Noninterest-bearing	$	1,359,072		$	1,342,804		$	1,333,474		$	1,373,106		$	1,420,990
Interest-bearing:
Demand deposits		1,330,268			1,291,011			1,319,783			1,337,445			1,356,017
Savings deposits		1,266,211			1,259,457			1,282,642			1,343,571			1,397,523
Time deposits		1,100,250			1,040,990			1,009,235			960,941			962,235
Total deposits		5,055,801			4,934,262			4,945,134			5,015,063			5,136,765
Short-term borrowings
FHLB short-term advances		-			25,000			-			-			-
Customer repurchase agreements		304,941			309,856			278,671			271,714			293,256
FHLB long-term advances		150,000			100,000			100,000			100,000			-
Other liabilities		121,210			121,868			142,187			123,865			129,711
Total Liabilities		5,631,952			5,490,986			5,465,992			5,510,642			5,559,732
Stockholders' Equity
Preferred stock		-			-			-			-			-
Common stock		47,619			47,619			47,619			47,619			47,619
Capital surplus		175,747			177,424			177,113			176,746			177,529
Retained earnings		799,024			780,299			763,425			744,248			721,727
Cost of common stock in treasury		(218,555	)		(217,737	)		(211,430	)		(201,973	)		(179,436	)
Accumulated other comprehensive loss:
Unrealized loss on securities available-for-sale		(119,023	)		(107,958	)		(163,171	)		(127,026	)		(112,967	)
Underfunded pension liability		(2,581	)		(2,581	)		(3,422	)		(3,422	)		(3,422	)
Total Accumulated Other Comprehensive Loss		(121,604	)		(110,539	)		(166,593	)		(130,448	)		(116,389	)
Total Stockholders' Equity		682,231			677,066			610,134			636,192			651,050
Total Liabilities and Stockholders' Equity	$	6,314,183		$	6,168,052		$	6,076,126		$	6,146,834		$	6,210,782
Regulatory Capital
Total CET 1 capital	$	644,235		$	627,579		$	615,798		$	605,661		$	606,675
Total tier 1 capital		644,235			627,579			615,798			605,661			606,675
Total risk-based capital		665,707			648,646			637,245			626,730			627,718
Total risk-weighted assets		3,989,171			3,996,688			4,009,798			3,913,870			3,878,994

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Commercial and industrial	$	407,770	$	426,950	$	424,647	$	417,847	$	390,861
1-4 Family		202,378		206,237		197,081		184,919		181,442
Hotels		354,929		357,142		321,236		324,745		327,554
Multi-family		186,555		189,165		192,329		191,483		195,042
Non Residential Non-Owner Occupied		682,609		680,590		651,498		612,703		617,357
Non Residential Owner Occupied		232,440		240,328		222,544		222,852		223,096
Commercial real estate (1)		1,658,911		1,673,462		1,584,688		1,536,702		1,544,491
Residential real estate (2)		1,786,764		1,788,150		1,768,358		1,746,618		1,737,604
Home equity		171,292		167,201		159,630		151,012		151,341
Consumer		63,556		65,246		65,586		65,201		66,994
DDA overdrafts		3,495		4,914		4,573		4,762		3,395
Gross Loans	$	4,091,788	$	4,125,923	$	4,007,482	$	3,922,142	$	3,894,686
Construction loans included in:
(1) - Commercial real estate loans	$	6,651	$	2,459	$	2,533	$	3,361	$	4,715
(2) - Residential real estate loans		19,709		23,066		20,056		20,470		25,224

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
	Three Months Ended
	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Allowance for Credit Losses
Balance at beginning of period	$	22,745		$	23,128		$	22,751		$	22,724		$	17,108
Charge-offs:
Commercial and industrial		(306	)		(84	)		-			(69	)		-
Commercial real estate		(31	)		(5	)		(256	)		(117	)		(3	)
Residential real estate		(19	)		(68	)		(88	)		(20	)		(32	)
Home equity		(27	)		(21	)		(112	)		(200	)		(67	)
Consumer		(115	)		(6	)		(10	)		(109	)		(62	)
DDA overdrafts		(356	)		(416	)		(422	)		(357	)		(450	)
Total charge-offs		(854	)		(600	)		(888	)		(872	)		(614	)
Recoveries:
Commercial and industrial		25			70			597			86			83
Commercial real estate		11			17			74			28			158
Residential real estate		49			4			28			5			10
Home equity		9			13			18			12			4
Consumer		98			45			27			28			23
DDA overdrafts		407			368			321			315			398
Total recoveries		599			517			1,065			474			676
Net (charge-offs) recoveries		(255	)		(83	)		177			(398	)		62
(Recovery of) provision for credit losses		(180	)		(300	)		200			425			2,918
PCD Loan Reserves		-			-			-			-			2,811
Adoption of ASU 2022-02		-			-			-			-			(175	)
Balance at end of period	$	22,310		$	22,745		$	23,128		$	22,751		$	22,724
Loans outstanding	$	4,091,788		$	4,125,923		$	4,007,482		$	3,922,142		$	3,894,686
Allowance as a percent of loans outstanding		0.55	%		0.55	%		0.58	%		0.58	%		0.58	%
Allowance as a percent of non-performing loans		206.8	%		290.6	%		440.1	%		405.5	%		400.1	%
Average loans outstanding	$	4,092,529		$	4,045,889		$	3,956,871		$	3,896,284		$	3,700,194
Net charge-offs (recoveries) (annualized) as a percent of average loans outstanding		0.02	%		0.01	%		(0.02	)%		0.04	%		(0.01)	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Nonaccrual Loans
Residential real estate	$	3,452		$	2,849		$	2,839		$	2,774		$	2,700
Home equity		121			111			75			24			35
Commercial and industrial		3,405			2,211			716			741			994
Commercial real estate		3,807			2,387			1,355			1,821			1,931
Consumer		1			-			1			36			19
Total nonaccrual loans		10,786			7,558			4,986			5,396			5,679
Accruing loans past due 90 days or more		-			270			269			215			-
Total non-performing loans		10,786			7,828			5,255			5,611			5,679
Other real estate owned		752			731			720			874			843
Total non-performing assets	$	11,538		$	8,559		$	5,975		$	6,485		$	6,522
Non-performing assets as a percent of loans and other real estate owned		0.28	%		0.21	%		0.15	%		0.17	%		0.17	%
Past Due Loans
Residential real estate	$	5,035		$	8,059		$	6,247		$	5,884		$	4,783
Home equity		1,028			1,235			1,278			784			551
Commercial and industrial		26			435			568			142			98
Commercial real estate		138			715			1,478			238			148
Consumer		75			129			84			57			3
DDA overdrafts		406			364			398			341			276
Total past due loans	$	6,708		$	10,937		$	10,053		$	7,446		$	5,859
Total past due loans as a percent of loans outstanding		0.16	%		0.27	%		0.25	%		0.19	%		0.15	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
	Three Months Ended
	March 31, 2024							December 31, 2023							March 31, 2023
	Average					Yield/		Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio (1):
Residential real estate (2)	$	1,953,647		$	24,148	4.97	%	$	1,945,185		$	23,673	4.83	%	$	1,840,828		$	20,007	4.41	%
Commercial, financial, and agriculture (2)		2,070,054			33,980	6.60	%		2,031,089			33,038	6.45	%		1,795,309			26,248	5.93	%
Installment loans to individuals (2), (3)		68,828			999	5.84	%		69,615			1,046	5.96	%		64,057			749	4.74	%
Total loans		4,092,529			59,127	5.81	%		4,045,889			57,757	5.66	%		3,700,194			47,004	5.15	%
Securities:
Taxable		1,200,310			12,040	4.03	%		1,194,448			12,336	4.10	%		1,322,060			11,773	3.61	%
Tax-exempt (4)		160,847			1,051	2.63	%		153,204			1,053	2.73	%		204,957			1,471	2.91	%
Total securities		1,361,157			13,091	3.87	%		1,347,652			13,389	3.94	%		1,527,017			13,244	3.52	%
Deposits in depository institutions		115,953			1,570	5.45	%		71,624			941	5.21	%		160,031			1,590	4.03	%
Total interest-earning assets		5,569,639			73,788	5.33	%		5,465,165			72,087	5.23	%		5,387,242			61,838	4.66	%
Cash and due from banks		98,966							87,633							67,975
Premises and equipment, net		71,954							72,435							71,422
Goodwill and intangible assets		162,257							163,220							124,546
Other assets		306,278							342,669							327,442
Less: Allowance for credit losses		(23,142	)						(23,532	)						(18,143	)
Total assets	$	6,185,952						$	6,107,590						$	5,960,484
Liabilities:
Interest-bearing demand deposits	$	1,283,868		$	3,439	1.08	%	$	1,299,683		$	3,467	1.06	%	$	1,234,981		$	1,741	0.57	%
Savings deposits		1,254,253			2,273	0.73	%		1,274,726			2,369	0.74	%		1,376,317			1,348	0.40	%
Time deposits (2)		1,073,083			8,385	3.14	%		1,025,870			6,644	2.57	%		902,583			2,601	1.17	%
Short-term borrowings		313,623			3,621	4.64	%		312,941			3,693	4.68	%		281,861			2,381	3.43	%
FHLB long-term advances		136,813			1,423	4.18	%		100,000			1,026	4.07	%		-			-	-	%
Total interest-bearing liabilities		4,061,640			19,141	1.90	%		4,013,220			17,199	1.70	%		3,795,742			8,071	0.86	%
Noninterest-bearing demand deposits		1,322,540							1,334,021							1,420,676
Other liabilities		115,589							132,862							129,411
Stockholders' equity		686,183							627,487							614,655
Total liabilities and
stockholders' equity	$	6,185,952						$	6,107,590						$	5,960,484
Net interest income				$	54,647						$	54,888						$	53,767
Net yield on earning assets						3.95	%						3.98	%						4.05	%
(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				$	133						$	201						$	518
(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				$	45						$	78						$	76
Commercial, financial, and agriculture					1,065							702							177
Installment loans to individuals					6							26							4
Time deposits					63							131							9
				$	1,179						$	937						$	266
(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
	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Net Interest Income/Margin
Net interest income ("GAAP")	$	54,427		$	54,666		$	55,614		$	55,502		$	53,459
Taxable equivalent adjustment		220			223			243			255			308
Net interest income, fully taxable equivalent	$	54,647		$	54,889		$	55,857		$	55,757		$	53,767
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")		10.81	%		10.98	%		10.04	%		10.35	%		10.48	%
Effect of goodwill and other intangibles, net		(2.35	)%		(2.41	)%		(2.49	)%		(2.45	)%		(2.43	)%
Tangible common equity to tangible assets		8.46	%		8.57	%		7.55	%		7.90	%		8.05	%
Commercial Loan Information (period end)
Commercial Sector	Total			% of Total Loans			Average DSC			Average LTV
Natural Gas Extraction	$	25,143		0.61%				3.71		N/A
Natural Gas Distribution		12,800		0.31%				5.46		N/A
Masonry Contractors		22,804		0.55 %				1.04		84%
Sheet Metal Work Manufacturing		25,887		0.63%				1.22		68%
Beer & Ale Merchant Wholesalers		25,414		0.62%				3.28		N/A
Gasoline Stations with Convenience Stores		43,985		1.07%				4.76		65%
Lessors of Residential Buildings & Dwellings		429,615		10.42%				1.89		66%
1-4 Family		185,436		4.50%				2.97		67%
Multi-Family		177,726		4.31%				1.84		64%
Lessors of Nonresidential Buildings		600,853		14.58%				1.70		65%
Office Buildings		125,922		3.05%				1.64		62%
Lessors of Mini-Warehouses & Self-Storage Units		50,920		1.24%				1.43		61%
Assisted Living Facilities		27,273		0.66%				1.38		61%
Hotels & Motels		355,343		8.62%				1.45		63%
	Average Balance			Median Balance
Commercial, Financial, and Agriculture Loans	$	446		$	93
Commercial Real Estate Loans		511			120
CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued
(Unaudited) ($ in 000s, except per share data)
Estimated Uninsured Deposits by Deposit Type
	March 31, 2024			December 31, 2023
Noninterest-Bearing Demand Deposits		16	%		16	%
Interest-Bearing Deposits
Demand Deposits		12	%		7	%
Savings Deposits		12	%		11	%
Time Deposits		15	%		13	%
Total Deposits		14	%		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
2024 YTD		7,935			1,121			0.4	%
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).

 

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The City Holding Stock at the time of publication of the news with a raise of +0,51 % to 103,5USD on Nasdaq stock exchange (23. April 2024, 02:00 Uhr).