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City Holding Company Announces Quarterly Results

City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.0 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $21.3 million and diluted earnings of $1.41 per share for the quarter ended March 31, 2022.

Net Interest Income

The Company’s net interest income decreased $2.7 million, or 6.7%, from $40.6 million during the fourth quarter of 2021 to $37.9 million during the first quarter of 2022. The Company’s tax equivalent net interest income decreased $2.7 million, or 6.6%, from $41.0 million for the fourth quarter of 2021 to $38.2 million for the first quarter of 2022. Lower commercial loan yields (44 basis points) decreased interest income by $2.3 million as compared to the quarter ended December 31, 2021. The fourth quarter of 2021 was boosted by an interest recovery of $2.1 million from a loan that had previously been classified as a nonperforming loan. In addition, loan fees decreased $0.8 million due to a decrease in PPP loan fees recognized as PPP loan balances declined to below $1 million at March 31, 2022. These decreases were partially offset by higher investment interest income ($0.5 million) due to both higher yields (14 basis points) and higher average balances ($29 million) during the quarter ended March 31, 2022. The Company’s reported net interest margin decreased from 2.94% for the fourth quarter of 2021 to 2.82% for the first quarter of 2022.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased modestly from 0.21%, or $7.6 million, at December 31, 2021 to 0.18%, or $6.3 million, at March 31, 2022. Total past due loans decreased slightly from $6.8 million, or 0.19% of total loans outstanding, at December 31, 2021 to $6.7 million, or 0.19% of total loans outstanding, at March 31, 2022.

As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses (“ACL”), the Company recorded a recovery of credit losses of $0.8 million in the first quarter of 2022, compared to a recovery of credit losses of $0.4 million for the comparable period in 2021, and did not record a provision for credit losses for the fourth quarter of 2021. The recovery of credit losses recorded in the first quarter of 2022 largely reflects the repayment of a loan from a previous acquisition and release of the associated credit mark. Because of continued improvements in economic conditions in the Company’s footprint, net charge-offs for the quarter ended March 31, 2022 were insignificant.

Non-interest Income

Non-interest income was $17.4 million during the quarter ended March 31, 2022, as compared to $16.6 million during the quarter ended March 31, 2021. During the first quarter of 2022, the Company reported $0.7 million of unrealized fair value losses on the Company’s equity securities compared to $0.2 million of realized and unrealized fair value gains on the Company’s equity securities during the first quarter of 2021. Exclusive of these items, non-interest income increased $1.8 million, or 10.8%, from $16.4 million for the first quarter of 2021 to $18.2 million for the first quarter of 2022. This increase was largely attributable to an increase of $0.8 million, or 14.4%, in service charges and an increase of $0.6 million in bank owned life insurance due to higher death benefit proceeds. In addition, bankcard revenue increased $0.2 million from the quarter ended March 31, 2021, to $6.4 million.

Non-interest Expenses

Non-interest expenses decreased $0.3 million, or 0.9%, from $29.8 million in the first quarter of 2021 to $29.5 million in the first quarter of 2022. This decrease was primarily due to a decrease in other expenses of $0.2 million from the quarter ended March 31, 2021. During the first quarter of 2022, most of the Company’s expenses did not significantly fluctuate from the first quarter of 2021; although we do anticipate salaries and employee benefits will increase in subsequent quarters.

Balance Sheet Trends

Loans increased $16.1 million (0.5%) from December 31, 2021 to $3.56 billion at March 31, 2022. PPP loans decreased $6.0 million from $6.6 million at December 31, 2021 to $0.6 million at March 31, 2022. Excluding outstanding PPP loans (included in the commercial and industrial loan category), total loans increased $22.1 million, (0.6%), from December 31, 2021 to $3.56 billion at March 31, 2022. Residential real estate loans increased $39.9 million (2.6%). This increase was partially offset by lower commercial real estate loans ($9.0 million, or 0.6%); lower DDA overdrafts ($4.0 million, or 62.1%); and lower commercial and industrial loans ($2.8 million, or 0.8%) (excluding PPP loans).

Total average depository balances increased $39.3 million, or 0.8%, from the quarter ended December 31, 2021 to the quarter ended March 31, 2022. Average savings deposit balances increased $45.7 million, average interest-bearing demand deposit balances increased $28.6 million, and noninterest-bearing demand deposit balances increased $4.1 million. These increases were partially offset by a decrease in time deposit balances of $39.1 million.

Income Tax Expense

The Company’s effective income tax rate for the first quarter of 2022 was 19.7% compared to 20.8% for the year ended December 31, 2021, and 20.1% for the quarter ended March 31, 2021.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 71.2% and the loan to asset ratio was 59.2% at March 31, 2022. The Company maintained investment securities totaling 23.9% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 66.1% of assets at March 31, 2022. Time deposits fund 17.0% of assets at March 31, 2022, but very few of these deposits are in accounts that have balances of more than $250,000, reflecting the core retail orientation of the Company.

The Company continues to be strongly capitalized with tangible equity of $516 million at March 31, 2022. Due primarily to unrealized security losses during the quarter ended March 31, 2022, the Company’s tangible equity ratio decreased from 9.6% at December 31, 2021 to 8.8% at March 31, 2022. At March 31, 2022, City National Bank’s Leverage Ratio was 8.80%, its Common Equity Tier I ratio was 14.82%, its Tier I Capital ratio was 14.82%, and its Total Risk-Based Capital ratio was 15.24%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On March 30, 2022, the Board of Directors of the Company approved a quarterly cash dividend of $0.60 per share payable April 29, 2022, to shareholders of record as of April 15, 2022. During the quarter ended March 31, 2022, the Company repurchased 38,000 common shares at a weighted average price of $78.09 per share as part of a one million share repurchase plan authorized by the Board of Directors in March 2021. As of March 31, 2022, the Company could repurchase 277,000 additional shares under the current program.

City Holding Company is the parent company of City National Bank of West Virginia. City National Bank operates 94 branches across West Virginia, Kentucky, Virginia, and Ohio.

Forward-Looking Information

This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 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) the uncertainties on the Company’s business, results of operations and financial condition, caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its continued influence on financial markets, the effectiveness of the Company’s work from home arrangements and staffing levels in operational facilities, the impact of market participants on which the Company relies and actions taken by governmental authorities and other third parties in response to the pandemic; (3) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for loan losses may not be sufficient to absorb actual losses in our loan portfolio, and risk from concentrations in our loan portfolio; (4) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (5) changes in the interest rate environment; (6) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (7) changes in technology and increased competition, including competition from non-bank financial institutions; (8) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (9) difficulty growing loan and deposit balances; (10) our ability to effectively execute our business plan, including with respect to future acquisitions; (11) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries; (12) 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; (13) regulatory enforcement actions and adverse legal actions; (14) difficulty attracting and retaining key employees; (15) 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, 2022 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary March 31, 2022 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 
Three Months Ended

March 31, 2022

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

 
Earnings
Net Interest Income (fully taxable equivalent)

$

38,239

 

$

40,956

 

$

39,822

 

$

38,257

 

$

37,871

 

Net Income available to common shareholders

 

21,342

 

 

23,386

 

 

22,732

 

 

22,148

 

 

19,814

 

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

$

1.41

 

$

1.54

 

$

1.47

 

$

1.41

 

$

1.25

 

Diluted

 

1.41

 

 

1.54

 

 

1.47

 

 

1.41

 

 

1.25

 

Weighted average number of shares (in thousands):
Basic

 

14,974

 

 

15,026

 

 

15,279

 

 

15,573

 

 

15,656

 

Diluted

 

15,002

 

 

15,056

 

 

15,302

 

 

15,594

 

 

15,687

 

Period-end number of shares (in thousands)

 

15,045

 

 

15,062

 

 

15,192

 

 

15,527

 

 

15,724

 

Cash dividends declared

$

0.60

 

$

0.60

 

$

0.58

 

$

0.58

 

$

0.58

 

Book value per share (period-end)

$

42.03

 

$

45.22

 

$

44.58

 

$

44.79

 

$

43.99

 

Tangible book value per share (period-end)

 

34.27

 

 

37.44

 

 

36.85

 

 

37.20

 

 

36.47

 

Market data:
High closing price

$

85.99

 

$

83.14

 

$

79.99

 

$

83.85

 

$

87.41

 

Low closing price

 

76.82

 

 

76.52

 

 

72.29

 

 

74.44

 

 

69.05

 

Period-end closing price

 

78.70

 

 

81.79

 

 

77.91

 

 

75.24

 

 

81.78

 

Average daily volume (in thousands)

 

59

 

 

52

 

 

53

 

 

61

 

 

63

 

Treasury share activity:
Treasury shares repurchased (in thousands)

 

38

 

 

131

 

 

337

 

 

217

 

 

75

 

Average treasury share repurchase price

$

78.09

 

$

78.93

 

$

75.65

 

$

78.75

 

$

76.71

 

 
Key Ratios (percent)
Return on average assets

 

1.42

%

 

1.56

%

 

1.53

%

 

1.49

%

 

1.38

%

Return on average tangible equity

 

15.3

%

 

16.7

%

 

15.7

%

 

15.2

%

 

13.5

%

Yield on interest earning assets

 

2.94

%

 

3.08

%

 

3.04

%

 

3.00

%

 

3.17

%

Cost of interest bearing liabilities

 

0.17

%

 

0.19

%

 

0.22

%

 

0.27

%

 

0.37

%

Net Interest Margin

 

2.82

%

 

2.94

%

 

2.89

%

 

2.81

%

 

2.91

%

Non-interest income as a percent of total revenue

 

32.4

%

 

30.2

%

 

31.1

%

 

31.0

%

 

30.4

%

Efficiency Ratio

 

51.7

%

 

48.3

%

 

50.0

%

 

52.8

%

 

54.3

%

Price/Earnings Ratio (a)

 

13.93

 

 

13.27

 

 

13.22

 

 

13.35

 

 

16.30

 

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

 

11.25

%

 

11.25

%

 

11.69

%

 

11.81

%

 

12.30

%

Tangible equity to tangible assets

 

8.75

%

 

9.58

%

 

9.59

%

 

9.98

%

 

9.93

%

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

 

16.18

%

 

16.08

%

 

16.11

%

 

16.40

%

 

16.76

%

Tier I

 

16.18

%

 

16.08

%

 

16.11

%

 

16.40

%

 

16.76

%

Total

 

16.60

%

 

16.51

%

 

16.56

%

 

16.88

%

 

17.33

%

Leverage

 

9.58

%

 

9.44

%

 

9.46

%

 

9.70

%

 

10.06

%

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

 

14.82

%

 

14.35

%

 

14.76

%

 

14.82

%

 

14.75

%

Tier I

 

14.82

%

 

14.35

%

 

14.76

%

 

14.82

%

 

14.75

%

Total

 

15.24

%

 

14.78

%

 

15.21

%

 

15.30

%

 

15.33

%

Leverage

 

8.80

%

 

8.45

%

 

8.73

%

 

8.80

%

 

8.91

%

 
Other (period-end)
Branches

 

94

 

 

94

 

 

94

 

 

94

 

 

94

 

FTE

 

897

 

 

905

 

 

921

 

 

912

 

 

916

 

 
Assets per FTE (in thousands)

$

6,703

 

$

6,637

 

$

6,463

 

$

6,477

 

$

6,434

 

Deposits per FTE (in thousands)

 

5,574

 

 

5,445

 

 

5,308

 

 

5,271

 

 

5,236

 

 

(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) March 31, 2022 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, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
 
Interest Income
Interest and fees on loans

$

31,874

 

$

35,277

 

$

33,961

 

$

33,114

 

$

34,324

 

Interest on investment securities:
Taxable

 

6,223

 

 

5,753

 

 

6,144

 

 

5,932

 

 

5,242

 

Tax-exempt

 

1,216

 

 

1,226

 

 

1,257

 

 

1,291

 

 

1,253

 

Interest on deposits in depository institutions

 

238

 

 

217

 

 

196

 

 

162

 

 

118

 

Total Interest Income

 

39,551

 

 

42,473

 

 

41,558

 

 

40,499

 

 

40,937

 

 
Interest Expense
Interest on deposits

 

1,521

 

 

1,710

 

 

1,955

 

 

2,460

 

 

3,280

 

Interest on short-term borrowings

 

114

 

 

132

 

 

115

 

 

125

 

 

117

 

Total Interest Expense

 

1,635

 

 

1,842

 

 

2,070

 

 

2,585

 

 

3,397

 

Net Interest Income

 

37,916

 

 

40,631

 

 

39,488

 

 

37,914

 

 

37,540

 

(Recovery of) provision for credit losses

 

(756

)

 

-

 

 

(725

)

 

(2,000

)

 

(440

)

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

 

38,672

 

 

40,631

 

 

40,213

 

 

39,914

 

 

37,980

 

 
Non-Interest Income
Net gains on sale of investment securities

 

-

 

 

-

 

 

-

 

 

29

 

 

283

 

Unrealized (losses) gains recognized on equity securities still held

 

(723

)

 

52

 

 

93

 

 

410

 

 

(51

)

Service charges

 

6,725

 

 

7,057

 

 

6,706

 

 

5,895

 

 

5,881

 

Bankcard revenue

 

6,444

 

 

6,762

 

 

6,791

 

 

7,221

 

 

6,213

 

Trust and investment management fee income

 

2,197

 

 

2,198

 

 

2,172

 

 

2,012

 

 

2,033

 

Bank owned life insurance

 

2,014

 

 

748

 

 

747

 

 

940

 

 

1,460

 

Other income

 

791

 

 

799

 

 

1,438

 

 

941

 

 

811

 

Total Non-Interest Income

 

17,448

 

 

17,616

 

 

17,947

 

 

17,448

 

 

16,630

 

 
Non-Interest Expense
Salaries and employee benefits

 

15,577

 

 

15,299

 

 

15,321

 

 

15,559

 

 

15,671

 

Occupancy related expense

 

2,709

 

 

2,429

 

 

2,507

 

 

2,525

 

 

2,622

 

Equipment and software related expense

 

2,769

 

 

2,733

 

 

2,554

 

 

2,655

 

 

2,544

 

FDIC insurance expense

 

435

 

 

400

 

 

396

 

 

382

 

 

405

 

Advertising

 

798

 

 

582

 

 

804

 

 

824

 

 

881

 

Bankcard expenses

 

1,606

 

 

1,576

 

 

1,549

 

 

1,746

 

 

1,584

 

Postage, delivery, and statement mailings

 

636

 

 

590

 

 

573

 

 

568

 

 

592

 

Office supplies

 

410

 

 

378

 

 

406

 

 

371

 

 

392

 

Legal and professional fees

 

527

 

 

405

 

 

610

 

 

589

 

 

675

 

Telecommunications

 

584

 

 

702

 

 

790

 

 

676

 

 

690

 

Repossessed asset losses (gains), net of expenses

 

40

 

 

(29

)

 

(108

)

 

1

 

 

79

 

Other expenses

 

3,436

 

 

3,559

 

 

3,776

 

 

3,678

 

 

3,674

 

Total Non-Interest Expense

 

29,527

 

 

28,624

 

 

29,178

 

 

29,574

 

 

29,809

 

Income Before Income Taxes

 

26,593

 

 

29,623

 

 

28,982

 

 

27,788

 

 

24,801

 

Income tax expense

 

5,251

 

 

6,237

 

 

6,250

 

 

5,640

 

 

4,987

 

Net Income Available to Common Shareholders

$

21,342

 

$

23,386

 

$

22,732

 

$

22,148

 

$

19,814

 

 
Distributed earnings allocated to common shareholders

$

8,943

 

$

8,949

 

$

8,726

 

$

8,921

 

$

9,037

 

Undistributed earnings allocated to common shareholders

 

12,199

 

 

14,211

 

 

13,786

 

 

13,021

 

 

10,598

 

Net earnings allocated to common shareholders

$

21,142

 

$

23,160

 

$

22,512

 

$

21,942

 

$

19,635

 

 
Average common shares outstanding

 

14,974

 

 

15,026

 

 

15,279

 

 

15,573

 

 

15,656

 

Shares for diluted earnings per share

 

15,002

 

 

15,056

 

 

15,302

 

 

15,594

 

 

15,687

 

 
Basic earnings per common share

$

1.41

 

$

1.54

 

$

1.47

 

$

1.41

 

$

1.25

 

Diluted earnings per common share

$

1.41

 

$

1.54

 

$

1.47

 

$

1.41

 

$

1.25

 

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
 
Assets
Cash and due from banks

$

100,877

 

$

101,804

 

$

103,841

 

$

97,523

 

$

97,709

 

Interest-bearing deposits in depository institutions

 

497,171

 

 

532,827

 

 

535,708

 

 

512,367

 

 

659,090

 

Cash and cash equivalents

 

598,048

 

 

634,631

 

 

639,549

 

 

609,890

 

 

756,799

 

 
Investment securities available-for-sale, at fair value

 

1,409,513

 

 

1,408,165

 

 

1,372,077

 

 

1,339,436

 

 

1,183,253

 

Other securities

 

24,785

 

 

25,531

 

 

25,497

 

 

25,793

 

 

29,174

 

Total investment securities

 

1,434,298

 

 

1,433,696

 

 

1,397,574

 

 

1,365,229

 

 

1,212,427

 

 
Gross loans

 

3,559,905

 

 

3,543,814

 

 

3,521,925

 

 

3,529,416

 

 

3,546,723

 

Allowance for credit losses

 

(17,280

)

 

(18,166

)

 

(18,751

)

 

(20,016

)

 

(24,076

)

Net loans

 

3,542,625

 

 

3,525,648

 

 

3,503,174

 

 

3,509,400

 

 

3,522,647

 

 
Bank owned life insurance

 

120,522

 

 

120,978

 

 

120,238

 

 

119,491

 

 

118,976

 

Premises and equipment, net

 

73,067

 

 

74,071

 

 

75,156

 

 

76,263

 

 

76,529

 

Accrued interest receivable

 

16,101

 

 

15,627

 

 

16,224

 

 

15,967

 

 

16,231

 

Net deferred tax assets

 

18,001

 

 

63

 

 

90

 

 

-

 

 

1,395

 

Intangible assets

 

116,774

 

 

117,121

 

 

117,489

 

 

117,857

 

 

118,224

 

Other assets

 

92,331

 

 

81,860

 

 

82,419

 

 

89,958

 

 

71,142

 

Total Assets

$

6,011,767

 

$

6,003,695

 

$

5,951,913

 

$

5,904,055

 

$

5,894,370

 

 
Liabilities
Deposits:
Noninterest-bearing

$

1,357,266

 

$

1,373,125

 

$

1,311,464

 

$

1,279,932

 

$

1,244,175

 

Interest-bearing:
Demand deposits

 

1,191,492

 

 

1,135,848

 

 

1,139,033

 

 

1,070,004

 

 

1,077,749

 

Savings deposits

 

1,425,528

 

 

1,347,448

 

 

1,332,910

 

 

1,301,219

 

 

1,265,038

 

Time deposits

 

1,024,559

 

 

1,068,915

 

 

1,104,069

 

 

1,153,391

 

 

1,209,873

 

Total deposits

 

4,998,845

 

 

4,925,336

 

 

4,887,476

 

 

4,804,546

 

 

4,796,835

 

Short-term borrowings
Customer repurchase agreements

 

288,483

 

 

312,458

 

 

296,642

 

 

311,316

 

 

316,003

 

Net deferred tax liabilities

 

-

 

 

-

 

 

-

 

 

2,310

 

 

-

 

Other liabilities

 

92,009

 

 

84,796

 

 

90,499

 

 

90,407

 

 

89,847

 

Total Liabilities

 

5,379,337

 

 

5,322,590

 

 

5,274,617

 

 

5,208,579

 

 

5,202,685

 

 
Stockholders' Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

Capital surplus

 

170,206

 

 

170,942

 

 

170,300

 

 

169,674

 

 

170,526

 

Retained earnings

 

654,138

 

 

641,826

 

 

627,463

 

 

613,553

 

 

600,396

 

Cost of common stock in treasury

 

(194,819

)

 

(193,542

)

 

(183,303

)

 

(157,936

)

 

(142,484

)

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

 

(41,229

)

 

17,745

 

 

20,878

 

 

28,227

 

 

21,289

 

Underfunded pension liability

 

(3,485

)

 

(3,485

)

 

(5,661

)

 

(5,661

)

 

(5,661

)

Total Accumulated Other Comprehensive (Loss) Income

 

(44,714

)

 

14,260

 

 

15,217

 

 

22,566

 

 

15,628

 

Total Stockholders' Equity

 

632,430

 

 

681,105

 

 

677,296

 

 

695,476

 

 

691,685

 

Total Liabilities and Stockholders' Equity

$

6,011,767

 

$

6,003,695

 

$

5,951,913

 

$

5,904,055

 

$

5,894,370

 

 
Regulatory Capital
Total CET 1 capital

$

565,048

 

$

555,532

 

$

550,426

 

$

561,317

 

$

563,523

 

Total tier 1 capital

 

565,048

 

 

555,532

 

 

550,426

 

 

561,317

 

 

563,523

 

Total risk-based capital

 

579,807

 

 

570,336

 

 

565,712

 

 

577,543

 

 

582,816

 

Total risk-weighted assets

 

3,492,920

 

 

3,453,893

 

 

3,417,020

 

 

3,421,764

 

 

3,362,595

 

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
 
 
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
 
Commercial and industrial

$

337,384

$

346,184

$

353,046

$

358,583

$

371,195

 
1-4 Family

 

108,424

 

107,873

 

108,913

 

108,079

 

108,131

Hotels

 

314,902

 

311,315

 

297,341

 

290,119

 

293,176

Multi-family

 

209,359

 

215,677

 

215,307

 

212,715

 

212,561

Non Residential Non-Owner Occupied

 

637,092

 

639,818

 

664,365

 

653,264

 

649,683

Non Residential Owner Occupied

 

200,180

 

204,233

 

205,579

 

209,100

 

199,130

Commercial real estate (1)

 

1,469,957

 

1,478,916

 

1,491,505

 

1,473,277

 

1,462,681

 
Residential real estate (2)

 

1,588,860

 

1,548,965

 

1,506,572

 

1,521,102

 

1,532,907

Home equity

 

121,460

 

122,345

 

124,806

 

127,608

 

130,009

Consumer

 

39,778

 

40,901

 

43,296

 

45,184

 

47,224

DDA overdrafts

 

2,466

 

6,503

 

2,700

 

3,662

 

2,707

Gross Loans

$

3,559,905

$

3,543,814

$

3,521,925

$

3,529,416

$

3,546,723

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

$

14,877

$

11,783

$

19,360

$

43,904

$

39,101

(2) - Residential real estate loans

 

16,253

 

17,252

 

19,059

 

20,838

 

22,129

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
 
Three Months Ended

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

Allowance for Credit Losses
Balance at beginning of period

$

18,166

 

$

18,751

 

$

20,016

 

$

24,076

 

$

24,549

 

 
Charge-offs:
Commercial and industrial

 

(34

)

 

-

 

 

-

 

 

(211

)

 

(34

)

Commercial real estate

 

-

 

 

(276

)

 

(392

)

 

(1,718

)

 

(1

)

Residential real estate

 

(50

)

 

(68

)

 

(18

)

 

(86

)

 

(93

)

Home equity

 

-

 

 

(58

)

 

(47

)

 

(8

)

 

(64

)

Consumer

 

(23

)

 

(13

)

 

(3

)

 

(79

)

 

(147

)

DDA overdrafts

 

(631

)

 

(635

)

 

(633

)

 

(430

)

 

(453

)

Total charge-offs

 

(738

)

 

(1,050

)

 

(1,093

)

 

(2,532

)

 

(792

)

 
Recoveries:
Commercial and industrial

 

59

 

 

31

 

 

69

 

 

25

 

 

46

 

Commercial real estate

 

53

 

 

27

 

 

18

 

 

15

 

 

164

 

Residential real estate

 

45

 

 

7

 

 

29

 

 

17

 

 

74

 

Home equity

 

17

 

 

6

 

 

58

 

 

3

 

 

23

 

Consumer

 

28

 

 

40

 

 

72

 

 

104

 

 

39

 

DDA overdrafts

 

406

 

 

354

 

 

307

 

 

308

 

 

413

 

Total recoveries

 

608

 

 

465

 

 

553

 

 

472

 

 

759

 

 
Net charge-offs

 

(130

)

 

(585

)

 

(540

)

 

(2,060

)

 

(33

)

(Recovery of) provision for credit losses

 

(756

)

 

-

 

 

(725

)

 

(2,000

)

 

(440

)

Balance at end of period

$

17,280

 

$

18,166

 

$

18,751

 

$

20,016

 

$

24,076

 

 
Loans outstanding

$

3,559,905

 

$

3,543,814

 

$

3,521,925

 

$

3,529,416

 

$

3,546,723

 

Allowance as a percent of loans outstanding

 

0.49

%

 

0.51

%

 

0.53

%

 

0.57

%

 

0.68

%

Allowance as a percent of non-performing loans

 

331.3

%

 

290.1

%

 

243.1

%

 

199.3

%

 

194.5

%

 
Average loans outstanding

$

3,527,393

 

$

3,522,272

 

$

3,535,497

 

$

3,541,165

 

$

3,585,790

 

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

 

0.01

%

 

0.07

%

 

0.06

%

 

0.23

%

 

0.00

%

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
 
March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
Nonaccrual Loans
Residential real estate

$

1,786

 

$

2,809

 

$

3,634

 

$

2,482

 

$

3,004

 

Home equity

 

99

 

 

40

 

 

67

 

 

81

 

 

88

 

Commercial and industrial

 

1,069

 

 

996

 

 

531

 

 

820

 

 

1,200

 

Commercial real estate

 

2,241

 

 

2,373

 

 

3,355

 

 

6,383

 

 

7,792

 

Consumer

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total nonaccrual loans

 

5,195

 

 

6,218

 

 

7,587

 

 

9,766

 

 

12,084

 

Accruing loans past due 90 days or more

 

21

 

 

43

 

 

127

 

 

278

 

 

295

 

Total non-performing loans

 

5,216

 

 

6,261

 

 

7,714

 

 

10,044

 

 

12,379

 

Other real estate owned

 

1,099

 

 

1,319

 

 

1,335

 

 

1,309

 

 

1,625

 

Total non-performing assets

$

6,315

 

$

7,580

 

$

9,049

 

$

11,353

 

$

14,004

 

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

 

0.18

%

 

0.21

%

 

0.26

%

 

0.32

%

 

0.39

%

 
Past Due Loans
Residential real estate

$

4,976

 

$

5,321

 

$

5,258

 

$

5,453

 

$

4,092

 

Home equity

 

505

 

 

618

 

 

688

 

 

523

 

 

449

 

Commercial and industrial

 

56

 

 

336

 

 

455

 

 

721

 

 

1,358

 

Commercial real estate

 

744

 

 

22

 

 

441

 

 

498

 

 

508

 

Consumer

 

32

 

 

60

 

 

35

 

 

12

 

 

10

 

DDA overdrafts

 

392

 

 

489

 

 

390

 

 

417

 

 

212

 

Total past due loans

$

6,705

 

$

6,846

 

$

7,267

 

$

7,624

 

$

6,629

 

 
Total past due loans as a percent of loans outstanding

 

0.19

%

 

0.19

%

 

0.21

%

 

0.22

%

 

0.19

%

 
Troubled Debt Restructurings ("TDRs")
Residential real estate

$

16,182

 

$

16,943

 

$

16,910

 

$

17,788

 

$

18,572

 

Home equity

 

1,694

 

 

1,784

 

 

1,822

 

 

1,920

 

 

1,956

 

Commercial and industrial

 

397

 

 

414

 

 

430

 

 

-

 

 

-

 

Commercial real estate

 

1,890

 

 

1,914

 

 

1,937

 

 

3,076

 

 

4,615

 

Consumer

 

194

 

 

225

 

 

221

 

 

203

 

 

211

 

Total TDRs

$

20,357

 

$

21,280

 

$

21,320

 

$

22,987

 

$

25,354

 

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
 
Three Months Ended
March 31, 2022 December 31, 2021 March 31, 2021
Average Yield/ Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2)

$

1,667,683

 

$

15,596

3.79

%

$

1,645,167

 

$

15,692

3.78

%

$

1,696,064

 

$

16,853

4.03

%

Commercial, financial, and agriculture (2)

 

1,815,549

 

 

15,532

3.47

%

 

1,831,461

 

 

18,740

4.06

%

 

1,838,928

 

 

16,542

3.65

%

Installment loans to individuals (2), (3)

 

44,161

 

 

607

5.57

%

 

45,644

 

 

691

6.01

%

 

50,798

 

 

713

5.69

%

Previously securitized loans (4) ***

 

139

*** ***

 

154

*** ***

 

215

***
Total loans

 

3,527,393

 

 

31,874

3.66

%

 

3,522,272

 

 

35,277

3.97

%

 

3,585,790

 

 

34,323

3.88

%

Securities:
Taxable

 

1,207,333

 

 

6,223

2.09

%

 

1,171,340

 

 

5,753

1.95

%

 

945,177

 

 

5,242

2.25

%

Tax-exempt (5)

 

232,474

 

 

1,539

2.68

%

 

239,096

 

 

1,551

2.57

%

 

239,589

 

 

1,585

2.68

%

Total securities

 

1,439,807

 

 

7,762

2.19

%

 

1,410,436

 

 

7,304

2.05

%

 

1,184,766

 

 

6,827

2.34

%

Deposits in depository institutions

 

540,197

 

 

238

0.18

%

 

588,678

 

 

217

0.15

%

 

513,469

 

 

118

0.09

%

Total interest-earning assets

 

5,507,397

 

 

39,874

2.94

%

 

5,521,386

 

 

42,798

3.08

%

 

5,284,025

 

 

41,268

3.17

%

Cash and due from banks

 

101,806

 

 

98,111

 

 

79,683

 

Premises and equipment, net

 

73,827

 

 

74,847

 

 

76,837

 

Goodwill and intangible assets

 

116,994

 

 

117,349

 

 

118,453

 

Other assets

 

217,662

 

 

216,780

 

 

217,453

 

Less: Allowance for credit losses

 

(18,454

)

 

(18,756

)

 

(24,909

)

Total assets

$

5,999,232

 

$

6,009,717

 

$

5,751,542

 

 
Liabilities:
Interest-bearing demand deposits

$

1,142,278

 

$

130

0.05

%

$

1,113,693

 

$

131

0.05

%

$

1,008,283

 

$

124

0.05

%

Savings deposits

 

1,384,460

 

 

175

0.05

%

 

1,338,747

 

 

173

0.05

%

 

1,221,169

 

 

183

0.06

%

Time deposits (2)

 

1,048,185

 

 

1,216

0.47

%

 

1,087,280

 

 

1,406

0.51

%

 

1,236,197

 

 

2,973

0.98

%

Short-term borrowings

 

276,360

 

 

114

0.17

%

 

314,937

 

 

132

0.17

%

 

290,766

 

 

117

0.16

%

Total interest-bearing liabilities

 

3,851,283

 

 

1,635

0.17

%

 

3,854,657

 

 

1,842

0.19

%

 

3,756,415

 

 

3,397

0.37

%

Noninterest-bearing demand deposits

 

1,398,663

 

 

1,394,599

 

 

1,197,910

 

Other liabilities

 

74,084

 

 

84,071

 

 

89,695

 

Stockholders' equity

 

675,202

 

 

676,390

 

 

707,522

 

Total liabilities and
stockholders' equity

$

5,999,232

 

$

6,009,717

 

$

5,751,542

 

Net interest income

$

38,239

$

40,956

$

37,871

Net yield on earning assets

2.82

%

2.94

%

2.91

%

 
(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

$

298

$

1,106

$

835

 
(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

$

90

$

149

$

106

Commercial, financial, and agriculture

 

286

 

243

 

325

Installment loans to individuals

 

19

 

15

 

28

Time deposits

 

21

 

48

 

48

$

416

$

455

$

507

 
(3) Includes the Company’s consumer and DDA overdrafts loan categories.
(4) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.
CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations
(Unaudited) ($ in 000s, except per share data)
 
Three Months Ended

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

Net Interest Income/Margin
Net interest income ("GAAP")

$

37,916

 

$

40,631

 

$

39,488

 

$

37,914

 

$

37,540

 

Taxable equivalent adjustment

 

323

 

 

325

 

 

334

 

 

343

 

 

331

 

Net interest income, fully taxable equivalent

$

38,239

 

$

40,956

 

$

39,822

 

$

38,257

 

$

37,871

 

 
Average interest earning assets

$

5,507,397

 

$

5,521,386

 

$

5,462,410

 

$

5,459,564

 

$

5,284,025

 

 
Net Interest Margin

 

2.82

%

 

2.94

%

 

2.89

%

 

2.81

%

 

2.91

%

Accretion related to fair value adjustments

 

-0.03

%

 

-0.03

%

 

-0.04

%

 

-0.05

%

 

-0.04

%

Net Interest Margin (excluding accretion)

 

2.79

%

 

2.91

%

 

2.85

%

 

2.76

%

 

2.87

%

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

 

10.52

%

 

11.34

%

 

11.37

%

 

11.78

%

 

11.74

%

Effect of goodwill and other intangibles, net

 

-1.77

%

 

-1.76

%

 

-1.78

%

 

-1.80

%

 

-1.81

%

Tangible common equity to tangible assets

 

8.75

%

 

9.58

%

 

9.59

%

 

9.98

%

 

9.93

%

 

Contacts

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

(304) 769-1169

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