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City Holding Company Announces Quarterly Results
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
$ 54,647 $ 54,889 $ 55,855 $ 55,757 $ 53,767
Net Interest Income (fully taxable equivalent)
29,523 27,452 29,839 32,733 24,341
Net Income available to common shareholders
Per Share Data
Earnings per share available to common shareholders:
$ 1.98 $ 1.84 $ 1.98 $ 2.16 $ 1.63
Basic
1.97 1.84 1.98 2.16 1.63
Diluted
Weighted average number of shares (in thousands):
14,795 14,758 14,922 14,994 14,818
Basic
14,819 14,785 14,945 15,012 14,844
Diluted
14,825 14,832 14,901 15,007 15,260
Period-end number of shares (in thousands)
$ 0.72 $ 0.72 $ 0.72 $ 0.65 $ 0.65
Cash dividends declared
$ 46.02 $ 45.65 $ 40.94 $ 42.39 $ 42.66
Book value per share (period-end)
35.10 34.69 29.98 31.50 31.91
Tangible book value per share (period-end)
Market data:
$ 111.40 $ 115.77 $ 99.49 $ 97.92 $ 100.27
High closing price
99.28 87.43 87.51 83.57 89.17
Low closing price
104.22 110.26 90.35 89.99 90.88
Period-end closing price
63 62 62 80 84
Average daily volume (in thousands)
Treasury share activity:
36 70 109 269 218
Treasury shares repurchased (in thousands)
$ 100.24 $ 90.61 $ 89.33 $ 88.93 $ 92.10
Average treasury share repurchase price
Key Ratios (percent)
1.92 % 1.78 % 1.94 % 2.12 % 1.63 %
Return on average assets
22.7 % 23.5 % 24.1 % 27.4 % 19.9 %
Return on average tangible equity
5.33 % 5.23 % 5.08 % 4.87 % 4.66 %
Yield on interest earning assets
1.90 % 1.70 % 1.46 % 1.22 % 0.86 %
Cost of interest bearing liabilities
3.95 % 3.98 % 4.03 % 4.00 % 4.05 %
Net Interest Margin
25.0 % 25.6 % 24.6 % 27.1 % 24.7 %
Non-interest income as a percent of total revenue
48.5 % 47.4 % 46.4 % 44.6 % 45.7 %
Efficiency Ratio
13.17 14.95 11.40 10.40 13.95
Price/Earnings Ratio (a)
Capital (period-end)
11.09 % 10.27 % 10.73 % 10.38 % 10.31 %
Average Shareholders' Equity to Average Assets
8.46 % 8.57 % 7.55 % 7.90 % 8.05 %
Tangible equity to tangible assets
Consolidated City Holding Company risk based capital ratios (b):
16.15 % 15.70 % 15.36 % 15.47 % 15.64 %
CET I
16.15 % 15.70 % 15.36 % 15.47 % 15.64 %
Tier I
16.69 % 16.23 % 15.89 % 16.01 % 16.18 %
Total
10.45 % 10.23 % 10.05 % 9.80 % 10.20 %
Leverage
City National Bank risk based capital ratios (b):
14.60 % 13.79 % 14.73 % 14.82 % 14.08 %
CET I
14.60 % 13.79 % 14.73 % 14.82 % 14.08 %
Tier I
15.14 % 14.32 % 15.27 % 15.36 % 14.63 %
Total
9.42 % 8.94 % 9.61 % 9.36 % 9.18 %
Leverage
Other (period-end)
97 98 99 99 99
Branches
953 957 966 963 958
FTE
$ 6,625 $ 6,447 $ 6,291 $ 6,383 $ 6,483
Assets per FTE (in thousands)
5,304 5,157 5,120 5,208 5,362
Deposits per FTE (in thousands)
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
Three Months Ended Three Months Ended
March 31, 2024 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
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
March 31, 2024 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
CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
March 31, 2024 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
CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
Three Months Ended Three Months Ended
March 31, 2024 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
CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
March 31, 2024 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
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Total past due loans $ 6,708 $ 10,937 $ 10,053 $ 7,446 $ 5,859
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CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
Three Months Ended Three Months Ended
March 31, 2024 March 31, 2024 December 31, 2023 March 31, 2023
Average Average Yield/ Yield/ Average Yield/ Yield/ Average Yield/ Yield/
Balance Balance Interest Rate Balance Interest Rate Balance Interest Rate
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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 %
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