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Published: 2022-04-21 15:09:57 ET
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EX-99.1 2 chco03-31x22exhibit991.htm EX-99.1 Document













NEWS RELEASE

For Immediate Release
April 21, 2022


For Further Information Contact:
David L. Bumgarner, Executive Vice President and Chief Financial Officer
(304) 769-1169

City Holding Company Announces Quarterly Results

Charleston, West Virginia – 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,December 31,September 30,June 30,March 31,
20222021202120212021
Earnings
Net Interest Income (FTE)$38,239 $40,956 $39,822 $38,257 $37,871 
Net Income available to common shareholders21,342 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 
   Diluted1.41 1.54 1.47 1.41 1.25 
Weighted average number of shares (in thousands):
   Basic14,974 15,026 15,279 15,573 15,656 
   Diluted15,002 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 price76.82 76.52 72.29 74.44 69.05 
   Period-end closing price78.70 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 assets1.42 %1.56 %1.53 %1.49 %1.38 %
Return on average tangible equity15.3 %16.7 %15.7 %15.2 %13.5 %
Yield on interest earning assets2.94 %3.08 %3.04 %3.00 %3.17 %
Cost of interest bearing liabilities0.17 %0.19 %0.22 %0.27 %0.37 %
Net Interest Margin2.82 %2.94 %2.89 %2.81 %2.91 %
Non-interest income as a percent of total revenue32.4 %30.2 %31.1 %31.0 %30.4 %
Efficiency Ratio51.7 %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 Assets11.25 %11.25 %11.69 %11.81 %12.30 %
Tangible equity to tangible assets8.75 %9.58 %9.59 %9.98 %9.93 %
Consolidated City Holding Company risk based capital ratios (b):
   CET I16.18 %16.08 %16.11 %16.40 %16.76 %
   Tier I16.18 %16.08 %16.11 %16.40 %16.76 %
   Total16.60 %16.51 %16.56 %16.88 %17.33 %
   Leverage9.58 %9.44 %9.46 %9.70 %10.06 %
City National Bank risk based capital ratios (b):
   CET I14.82 %14.35 %14.76 %14.82 %14.75 %
   Tier I14.82 %14.35 %14.76 %14.82 %14.75 %
   Total15.24 %14.78 %15.21 %15.30 %15.33 %
   Leverage8.80 %8.45 %8.73 %8.80 %8.91 %
Other (period-end)
Branches94 94 94 94 94 
FTE897 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,December 31,September 30,June 30,March 31,
20222021202120212021
Interest Income
   Interest and fees on loans$31,874 $35,277 $33,961 $33,114 $34,324 
   Interest on investment securities:
     Taxable6,223 5,753 6,144 5,932 5,242 
     Tax-exempt1,216 1,226 1,257 1,291 1,253 
   Interest on deposits in depository institutions
238 217 196 162 118 
Total Interest Income39,551 42,473 41,558 40,499 40,937 
Interest Expense
   Interest on deposits1,521 1,710 1,955 2,460 3,280 
   Interest on short-term borrowings
114 132 115 125 117 
Total Interest Expense1,635 1,842 2,070 2,585 3,397 
Net Interest Income37,916 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 Losses38,672 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 charges6,725 7,057 6,706 5,895 5,881 
   Bankcard revenue6,444 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 insurance2,014 748 747 940 1,460 
   Other income791 799 1,438 941 811 
Total Non-Interest Income17,448 17,616 17,947 17,448 16,630 
Non-Interest Expense
   Salaries and employee benefits15,577 15,299 15,321 15,559 15,671 
   Occupancy related expense2,709 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 expense435 400 396 382 405 
   Advertising798 582 804 824 881 
   Bankcard expenses1,606 1,576 1,549 1,746 1,584 
   Postage, delivery, and statement mailings
636 590 573 568 592 
   Office supplies410 378 406 371 392 
   Legal and professional fees527 405 610 589 675 
   Telecommunications584 702 790 676 690 
   Repossessed asset losses (gains), net of expenses40 (29)(108)1 79 


   Other expenses3,436 3,559 3,776 3,678 3,674 
Total Non-Interest Expense29,527 28,624 29,178 29,574 29,809 
Income Before Income Taxes26,593 29,623 28,982 27,788 24,801 
   Income tax expense5,251 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 shareholders12,199 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 outstanding14,974 15,026 15,279 15,573 15,656 
Shares for diluted earnings per share15,002 15,056 15,302 15,594 15,687 
Basic earnings per common share1.411.541.471.411.25
Diluted earnings per common share1.411.541.471.411.25



CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
March 31,December 31,September 30,June 30,March 31,
20222021202120212021
Assets
Cash and due from banks$100,877 $101,804 $103,841 $97,523 $97,709 
Interest-bearing deposits in depository institutions497,171 532,827 535,708 512,367 659,090 
Cash and cash equivalents598,048 634,631 639,549 609,890 756,799 
Investment securities available-for-sale, at fair value1,409,513 1,408,165 1,372,077 1,339,436 1,183,253 
Other securities24,785 25,531 25,497 25,793 29,174 
Total investment securities1,434,298 1,433,696 1,397,574 1,365,229 1,212,427 
Gross loans3,559,905 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 loans3,542,625 3,525,648 3,503,174 3,509,400 3,522,647 
Bank owned life insurance120,522 120,978 120,238 119,491 118,976 
Premises and equipment, net73,067 74,071 75,156 76,263 76,529 
Accrued interest receivable16,101 15,627 16,224 15,967 16,231 
Net deferred tax assets18,001 63 90 — 1,395 
Intangible assets116,774 117,121 117,489 117,857 118,224 
Other assets92,331 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 deposits1,191,492 1,135,848 1,139,033 1,070,004 1,077,749 
   Savings deposits1,425,528 1,347,448 1,332,910 1,301,219 1,265,038 
   Time deposits1,024,559 1,068,915 1,104,069 1,153,391 1,209,873 
Total deposits4,998,845 4,925,336 4,887,476 4,804,546 4,796,835 
Short-term borrowings
   Customer repurchase agreements288,483 312,458 296,642 311,316 316,003 
Net deferred tax liabilities— — — 2,310 — 
Other liabilities92,009 84,796 90,499 90,407 89,847 
Total Liabilities5,379,337 5,322,590 5,274,617 5,208,579 5,202,685 
Stockholders' Equity
Preferred stock— — — — — 
Common stock47,619 47,619 47,619 47,619 47,619 
Capital surplus170,206 170,942 170,300 169,674 170,526 
Retained earnings654,138 641,826 627,463 613,553 600,396 


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' Equity632,430 681,105 677,296 695,476 691,685 
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 capital565,048 555,532 550,426 561,317 563,523 
Total risk-based capital579,807 570,336 565,712 577,543 582,816 
Total risk-weighted assets3,492,920 3,453,893 3,417,020 3,421,764 3,362,595 




CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
March 31,December 31,September 30,June 30,March 31,
20222021202120212021
Commercial and industrial$337,384 $346,184 $353,046 $358,583 $371,195 
1-4 Family108,424 107,873 108,913 108,079 108,131 
Hotels314,902 311,315 297,341 290,119 293,176 
Multi-family209,359 215,677 215,307 212,715 212,561 
Non Residential Non-Owner Occupied637,092 639,818 664,365 653,264 649,683 
Non Residential Owner Occupied200,180 204,233 205,579 209,100 199,130 
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 equity121,460 122,345 124,806 127,608 130,009 
Consumer39,778 40,901 43,296 45,184 47,224 
DDA Overdrafts2,466 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 loans16,253 17,252 19,059 20,838 22,129 



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

Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20222021202120212021
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 industrial59 31 69 25 46 
Commercial real estate53 27 18 15 164 
Residential real estate45 7 29 17 74 
Home equity17 6 58 3 23 
Consumer28 40 72 104 39 
DDA overdrafts406 354 307 308 413 
Total recoveries608 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 outstanding0.49 %0.51 %0.53 %0.57 %0.68 %
Allowance as a percent of non-performing loans331.3 %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 outstanding0.01 %0.07 %0.06 %0.23 %— %






CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, Continued
(Unaudited) ($ in 000s)
March 31,December 31,September 30,June 30,March 31,
20222021202120212021
Nonaccrual Loans
Residential real estate$1,786 $2,809 $3,634 $2,482 $3,004 
Home equity99 40 67 81 88 
Commercial and industrial1,069 996 531 820 1,200 
Commercial real estate2,241 2,373 3,355 6,383 7,792 
Consumer— — — — — 
   Total nonaccrual loans5,195 6,218 7,587 9,766 12,084 
Accruing loans past due 90 days or more21 43 127 278 295 
   Total non-performing loans5,216 6,261 7,714 10,044 12,379 
Other real estate owned1,099 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 owned0.18 %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 equity505 618 688 523 449 
Commercial and industrial56 336 455 721 1,358 
Commercial real estate744 22 441 498 508 
Consumer32 60 35 12 10 
DDA overdrafts392 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 outstanding0.19 %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 equity1,694 1,784 1,822 1,920 1,956 
   Commercial and industrial397 414 430 — — 
   Commercial real estate1,890 1,914 1,937 3,076 4,615 
   Consumer194 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, 2022December 31, 2021March 31, 2021
AverageYield/AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRateBalanceInterestRate
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 loans3,527,393 31,874 3.66 %3,522,272 35,277 3.97 %3,585,790 34,323 3.88 %
Securities:
Taxable1,207,333 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 securities1,439,807 7,762 2.19 %1,410,436 7,304 2.05 %1,184,766 6,827 2.34 %
Deposits in depository institutions540,197 238 0.18 %588,678 217 0.15 %513,469 118 0.09 %
Total interest-earning assets5,507,397 39,874 2.94 %5,521,386 42,798 3.08 %5,284,025 41,268 3.17 %
Cash and due from banks101,806 98,111 79,683 
Premises and equipment, net73,827 74,847 76,837 
Goodwill and intangible assets116,994 117,349 118,453 
Other assets217,662 216,780 217,453 
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 deposits1,384,460 175 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 borrowings276,360 114 0.17 %314,937 132 0.17 %290,766 117 0.16 %
   Total interest-bearing liabilities3,851,283 1,635 0.17 %3,854,657 1,842 0.19 %3,756,415 3,397 0.37 %
Noninterest-bearing demand deposits1,398,663 1,394,599 1,197,910 
Other liabilities74,084 84,071 89,695 
Stockholders' equity675,202 676,390 707,522 
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 assets2.82 %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 agriculture286 243 325 
Installment loans to individuals19 15 28 
Time deposits21 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,December 31,September 30,June 30,March 31,
20222021202120212021
Net Interest Income/Margin
Net interest income ("GAAP")$37,916 $40,631 $39,488 $37,914 $37,540 
Taxable equivalent adjustment323 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 Margin2.82 %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 %