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Published: 2022-01-25 00:00:00 ET
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NEWS RELEASE

For Immediate Release
January 25, 2022

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

City Holding Company Announces Annual Earnings

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 net income of $88.1 million and record diluted earnings of $5.66 per share for the year ended December 31, 2021.

Net Interest Income

The Company’s net interest income increased from $154.6 million for the year ended December 31, 2020 to $155.6 million for the year ended December 31, 2021. The Company’s tax equivalent net interest income increased $1.2 million, or 0.8%, from $155.7 million for the year ended December 31, 2020 to $156.9 million for the year ended December 31, 2021. The Company recognized $4.0 million of loan fees associated with PPP loans during 2021 as compared to $1.6 million during 2020. However, lower loan yields (which fell 29 basis points) decreased net interest income by $10.0 million. Additionally, lower average loan balances ($95.6 million) lowered net interest income by $4.2 million and a decrease in accretion from fair value adjustments decreased interest income by $1.7 million. Higher investment balances (which increased $262.2 million) increased net interest income by $7.2 million, while investment yields (which decreased by 45 basis points) decreased net interest income by $6.0 million. Lower rates paid on interest bearing liabilities (40 basis points) and lower average time deposit balances (down $172.3 million) increased net interest income by $11.7 million and $2.6 million, respectively. The Company’s reported net interest margin declined from 3.16% for the year ended December 31, 2020 to 2.89% for the year ended December 31, 2021. Excluding the favorable impact of the accretion from the fair value adjustments, the net interest margin would have been 2.85% for the year ended December 31, 2021 and 3.08% for the year ended December 31, 2020.

The Company’s net interest income increased from $39.5 million during the third quarter of 2021 to $40.6 million during the fourth quarter of 2021. During the fourth quarter of 2021, the Company’s tax equivalent net interest income increased $1.1 million, or 2.8%, to $40.9 million from $39.8 million during the third quarter of 2021. An increase in loan yields (which increased 16 basis points), largely due to interest recoveries on a loan that previously had been classified as a nonperforming loan, increased net interest income by $1.4 million, and lower rates paid on time deposits (which decreased 7 basis points) increased overall net interest income by $0.2 million. These increases were partially offset by lower


investment yields (17 basis points) which lowered net interest income by $0.6 million. The Company’s reported net interest margin increased from 2.89% for the third quarter of 2021 to 2.94% for the fourth quarter of 2021. Excluding the favorable impact of the accretion from fair value adjustments, the net interest margin would have been 2.91% for the quarter ended December 31, 2021 and 2.86% for the quarter ended September 30, 2021.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased from 0.38% at December 31, 2020 to 0.21% at December 31, 2021. Total nonperforming assets decreased from $13.9 million at December 31, 2020 to $7.6 million at December 31, 2021. Total past due loans decreased from $8.9 million, or 0.25% of total loans outstanding, at December 31, 2020 to $6.8 million, or 0.19% of total loans outstanding, at December 31, 2021.

As a result of the Company’s quarterly analysis of the adequacy of the ACL, the Company did not record a provision for credit losses in the fourth quarter of 2021 and a recovery of credit losses of $3.2 million for the year ended December 31, 2021, compared to a provision for credit losses of $0.5 million and $10.7 million for the comparable periods in 2020. The determination of the Company’s allowance for credit losses is largely dependent on expected unemployment ranges. Due to improvements in the outlook for unemployment ranges utilized by the Company and adjustments to other qualitative and other factors, during 2021 the Company partially recovered a portion of the provision for credit losses incurred in the quarter ended March 31, 2020 related to the COVID-19 pandemic.

Non-interest Income

Non-interest income was $69.6 million for 2021 as compared to $82.7 million for 2020. During 2020, the Company sold the entirety of its Visa Inc. Class B common shares (86,605 shares) in a cash transaction that resulted in a pre-tax gain of $17.8 million, or $0.84 diluted per share on an after-tax basis. Additionally, the Company reported $0.3 million of realized security gains on the sale of investment securities and $0.5 million of unrealized fair value gains on the Company’s equity securities during 2021 compared to $0.9 million of unrealized fair value losses on the Company’s equity securities during 2020. Exclusive of these items, non-interest income increased from $65.6 million for the year ended December 31, 2020 to $68.8 million for the year ended December 31, 2021. This increase was largely attributable to an increase of $3.9 million, or 17.0%, in bankcard revenues and a $0.7 million, or 8.8%, increase in trust and investment management fee income. These increases were partially offset by a decrease of $0.7 million, or 15.0%, in other income and a decrease of $0.5 million in bank owned life insurance due to lower death benefit proceeds received during 2021 compared to 2020.

Non-interest income was $17.6 million during the quarter ended December 31, 2021 as compared to $17.7 million during the quarter ended December 31, 2020. During the fourth quarter of 2021, the Company reported $0.1 million of unrealized fair value gains on the Company’s equity securities compared to $0.8 million of unrealized fair value gains on the Company’s equity securities during the fourth quarter of 2020. Exclusive of these unrealized fair value gains, non-interest income increased from $16.9 million for the fourth quarter of 2020 to $17.6 million for the fourth quarter of 2021. This increase was largely attributable to higher bankcard revenues ($0.8 million, or 12.9%) and service charges ($0.3 million, or 4.2%). These increases were partially offset by a decrease in other income ($0.3 million).

Non-interest Expenses

Non-interest expenses increased from $115.3 million for 2020 to $117.2 million for 2021. This increase was primarily due to an increase in telecommunication expenses ($0.7 million), FDIC insurance expense ($0.7 million), bankcard expenses ($0.6 million), occupancy related expenses ($0.3 million), advertising


expenses ($0.3 million), and equipment and software related expense ($0.3 million). These increases were partially offset by a decrease in other expenses ($0.6 million) and repossessed asset gains ($0.3 million).

Non-interest expenses remained level at $28.6 million for both the quarter ended December 31, 2020 and the quarter ended December 31, 2021. A decrease in salaries and employee benefits expense of $0.7 million was essentially offset by increases in other expenses ($0.2 million), telecommunication expense ($0.2 million), and bankcard expenses ($0.1 million).

Balance Sheet Trends

Loans decreased $78.3 million (2.2%) from December 31, 2020 to $3.54 billion at December 31, 2021. PPP loans decreased $48.9 million from $55.4 million at December 31, 2020 to $6.6 million at December 31, 2021. Excluding outstanding PPP loans (included in the commercial and industrial loan category), total loans decreased $29.4 million, (0.8%), from December 31, 2020 to $3.54 billion at December 31, 2021. Residential real estate loans decreased $38.7 million (2.4%); home equity loans decreased $14.1 million (10.4%); and consumer loans decreased $6.8 million (14.2%). These decreases were partially offset by increases in commercial and industrial loans ($22.1 million, or 7.5%) (excluding PPP loans).

Total average depository balances for the year ended December 31, 2021 increased $486.5 million, or 11.2%, as compared to the year ended December 31, 2020. Average noninterest bearing demand deposits increased $280.0 million, average savings deposits increased $219.5 million, and average interest bearing demand deposits increased $159.3 million. These increases were partially offset by a decrease in average time deposits of $172.3 million. From December 31, 2020, to December 31, 2021, total demand deposit account households increased 2.6% and total demand deposit accounts increased 2.5%.

Income Tax Expense

The Company’s effective income tax rate for the quarter and year ended December 31, 2021 was 21.1% and 20.8%, respectively, compared to 17.0% and 19.5% for the comparable periods in 2020.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 72.0% and the loan to asset ratio was 59.0% at December 31, 2021. The Company maintained investment securities totaling 23.9% of assets as of the same date. Because interest rates remain extremely low, at December 31, 2021 the company maintained significant cash and cash equivalent assets which totaled 10.5% of assets. The Company’s deposit mix is weighted toward checking and saving accounts that fund 64.2% of assets at December 31, 2021. Time deposits fund 17.8% of assets at December 31, 2021, but very few of these deposits are in accounts that have balances of more than $250,000.

The Company continues to be strongly capitalized with tangible equity of $564 million at December 31, 2021. Due to the continued influx of deposits during 2021, the Company’s tangible equity ratio decreased from 10.3% at December 31, 2020 to 9.6% at December 31, 2021. At December 31, 2021, City National Bank’s Leverage Ratio was 8.45%, its Common Equity Tier I ratio was 14.35%, its Tier I Capital ratio was 14.35%, and its Total Risk-Based Capital ratio was 14.78%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On November 19, 2021, the Board approved a quarterly cash dividend of $0.60 cents per share payable January 31, 2022, to shareholders of record as of January 14, 2022. This represents a 3.45% increase from the $0.58 per share dividend paid on October 29, 2021. During the year ended December 31, 2021, the Company repurchased 760,000 common shares at a weighted average price of $77.21 per share as part of


a one million share repurchase plan authorized by the Board of Directors in March 2021. As of December 31, 2021, the Company could repurchase approximately 315,000 shares under the current plan.

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, 2020 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 credit 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 December 31, 2021 Form 10-K. The Company will continue to evaluate the impact of any subsequent events on the preliminary December 31, 2021 results and will adjust the amounts if necessary.








CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2021202120212021202020212020
Earnings
Net Interest Income (fully taxable equivalent)$40,956 $39,822 $38,257 $37,871 $38,514 $156,906 $155,683 
Net Income available to common shareholders23,386 22,732 22,148 19,814 22,222 88,080 89,595 
Per Share Data
Earnings per share available to common shareholders:
   Basic$1.54 $1.47 $1.41 $1.25 $1.40 $5.67 $5.55 
   Diluted1.54 1.47 1.41 1.25 1.40 5.66 5.55 
Weighted average number of shares (in thousands):
   Basic15,026 15,279 15,573 15,656 15,708 15,381 15,975 
   Diluted15,056 15,302 15,594 15,687 15,733 15,407 15,995 
Period-end number of shares (in thousands)15,062 15,192 15,527 15,724 15,768 15,062 15,768 
Cash dividends declared$0.60 $0.58 $0.58 $0.58 $0.58 $2.34 $2.29 
Book value per share (period-end)45.22 44.58 44.79 43.99 44.47 45.22 44.47 
Tangible book value per share (period-end)37.44 36.85 37.20 36.47 36.94 37.44 36.94 
Market data:
   High closing price$83.14 $79.99 $83.85 $87.41 $70.77 $87.41 $82.40 
   Low closing price76.52 72.29 74.44 69.05 56.98 69.05 55.18 
   Period-end closing price81.79 77.91 75.24 81.78 69.55 81.79 69.55 
   Average daily volume (in
   thousands)		52 53 61 63 56 57 70 
Treasury share activity:
      Treasury shares repurchased
     (in thousands)		131 337 217 75 81 760 573 
      Average treasury share repurchase price
$78.93 $75.65 $78.75 $76.71 $60.32 $77.21 $63.68 
Key Ratios (percent)
Return on average assets1.56 %1.53 %1.49 %1.38 %1.59 %1.49 %1.66 %
Return on average tangible equity16.7 %15.7 %15.2 %13.5 %15.3 %15.3 %15.6 %
Yield on interest earning assets3.08 %3.04 %3.00 %3.17 %3.32 %3.07 %3.64 %
Cost of interest bearing liabilities0.19 %0.22 %0.27 %0.37 %0.47 %0.26 %0.66 %
Net Interest Margin2.94 %2.89 %2.81 %2.91 %2.99 %2.89 %3.16 %
Non-interest income as a percent of total revenue30.2 %31.1 %31.0 %30.4 %30.7 %30.8 %34.8 %
Efficiency Ratio48.3 %50.0 %52.8 %54.3 %51.0 %51.3 %51.3 %
Price/Earnings Ratio (a)13.27 13.22 13.35 16.30 12.41 14.42 12.52 


Capital (period-end)
Average Shareholders' Equity to Average Assets11.25 %11.69 %11.81 %12.30 %12.46 %
Tangible equity to tangible assets9.58 %9.59 %9.98 %9.93 %10.33 %
Consolidated City Holding Company risk based capital ratios (b):
   CET I16.08 %16.11 %16.40 %16.76 %16.18 %
   Tier I16.08 %16.11 %16.40 %16.76 %16.18 %
   Total16.51 %16.56 %16.88 %17.33 %16.75 %
   Leverage9.44 %9.46 %9.70 %10.06 %10.22 %
City National Bank risk based capital ratios (b):
   CET I14.35 %14.76 %14.82 %14.75 %14.10 %
   Tier I14.35 %14.76 %14.82 %14.75 %14.10 %
   Total14.78 %15.21 %15.30 %15.33 %14.68 %
   Leverage8.45 %8.73 %8.80 %8.91 %8.97 %
Other (period-end)
Branches94 94 94 94 94 
FTE905 921 912 916 926 
   Assets per FTE (in thousands)$6,637 $6,463 $6,477 $6,434 $6,219 
   Deposits per FTE (in thousands)5,445 5,308 5,271 5,236 5,024 
(a) The price/earnings ratio is computed based on annualized quarterly earnings (excludes gain for sale of VISA shares, net of taxes).
(b) December 31, 2021 risk-based capital ratios are estimated.




CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2021202120212021202020212020
Interest Income
   Interest and fees on loans$35,277 $33,961 $33,114 $34,324 $35,685 $136,676 $150,498 
   Interest on investment securities:
     Taxable5,753 6,144 5,932 5,242 5,500 23,071 23,355 
     Tax-exempt1,226 1,257 1,291 1,253 1,254 5,027 3,914 
   Interest on deposits in depository institutions
217 196 162 118 60 693 492 
Total Interest Income42,473 41,558 40,499 40,937 42,499 165,467 178,259 
Interest Expense
   Interest on deposits1,710 1,955 2,460 3,280 4,198 9,405 22,522 
   Interest on short-term borrowings
132 115 125 117 120 489 993 
   Interest on long-term debt— — — — — — 100 
Total Interest Expense1,842 2,070 2,585 3,397 4,318 9,894 23,615 
Net Interest Income40,631 39,488 37,914 37,540 38,181 155,573 154,644 
(Recovery of) provision for credit losses— (725)(2,000)(440)474 (3,165)10,722 
Net Interest Income After (Recovery of) Provision for Credit Losses40,631 40,213 39,914 37,980 37,707 158,738 143,922 
Non-Interest Income
Net gains on sale of investment securities— — 29 283 6 312 62 
Unrealized gains (losses) recognized on securities still held
52 93 410 (51)835 504 (863)
   Service charges7,057 6,706 5,895 5,881 6,771 25,539 25,733 
   Bankcard revenue6,762 6,791 7,221 6,213 5,991 26,987 23,059 
   Trust and investment management fee income
2,198 2,172 2,012 2,033 2,162 8,415 7,736 
   Bank owned life insurance748 747 940 1,460 813 3,895 4,424 
   Sale of VISA shares— — — — — — 17,837 
   Other income799 1,438 941 811 1,143 3,989 4,692 
Total Non-Interest Income17,616 17,947 17,448 16,630 17,721 69,641 82,680 
Non-Interest Expense
   Salaries and employee benefits15,299 15,321 15,559 15,671 15,989 61,850 62,074 
   Occupancy related expense2,429 2,507 2,525 2,622 2,447 10,083 9,765 
   Equipment and software related expense
2,733 2,554 2,655 2,544 2,660 10,486 10,200 
   FDIC insurance expense400 396 382 405 363 1,583 884 
   Advertising582 804 824 881 538 3,091 2,776 


   Bankcard expenses1,576 1,549 1,746 1,584 1,443 6,455 5,893 
   Postage, delivery, and statement mailings
590 573 568 592 546 2,323 2,268 
   Office supplies378 406 371 392 413 1,547 1,556 
   Legal and professional fees405 610 589 675 438 2,279 2,176 
   Telecommunications702 790 676 690 540 2,858 2,129 
   Repossessed asset (gains) losses, net of expenses(29)(108)1 79 (68)(57)245 
   Other expenses3,559 3,776 3,678 3,674 3,332 14,687 15,324 
Total Non-Interest Expense28,624 29,178 29,574 29,809 28,641 117,185 115,290 
Income Before Income Taxes29,623 28,982 27,788 24,801 26,787 111,194 111,312 
   Income tax expense6,237 6,250 5,640 4,987 4,565 23,114 21,717 
Net Income Available to Common Shareholders$23,386 $22,732 $22,148 $19,814 $22,222 $88,080 $89,595 
Distributed earnings allocated to common shareholders$8,949 $8,726 $8,921 $9,037 $9,053 $34,901 $35,745 
Undistributed earnings allocated to common shareholders14,211 13,786 13,021 10,598 12,947 52,336 52,963 
Net earnings allocated to common shareholders$23,160 $22,512 $21,942 $19,635 $22,000 $87,237 $88,708 
Average common shares outstanding15,026 15,279 15,573 15,656 15,708 15,381 15,975 
Shares for diluted earnings per share15,056 15,302 15,594 15,687 15,733 15,407 15,995 
Basic earnings per common share$1.54 $1.47 $1.41 $1.25 $1.40 $5.67 $5.55 
Diluted earnings per common share$1.54 $1.47 $1.41 $1.25 $1.40 $5.66 $5.55 



CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
December 31,September 30,June 30,March 31,December 31,
20212021202120212020
Assets
Cash and due from banks$101,804 $103,841 $97,523 $97,709 $77,412 
Interest-bearing deposits in depository institutions532,827 535,708 512,367 659,090 451,247 
Cash and cash equivalents634,631 639,549 609,890 756,799 528,659 
Investment securities available-for-sale, at fair value1,408,165 1,372,077 1,339,436 1,183,253 1,176,797 
Other securities25,531 25,497 25,793 29,174 29,364 
Total investment securities1,433,696 1,397,574 1,365,229 1,212,427 1,206,161 
Gross loans3,543,814 3,521,925 3,529,416 3,546,723 3,622,119 
Allowance for credit losses(18,166)(18,751)(20,016)(24,076)(24,549)
Net loans3,525,648 3,503,174 3,509,400 3,522,647 3,597,570 
Bank owned life insurance120,978 120,238 119,491 118,976 118,243 
Premises and equipment, net74,071 75,156 76,263 76,529 76,925 
Accrued interest receivable15,627 16,224 15,967 16,231 15,793 
Net deferred tax assets63 90 — 1,395 — 
Intangible assets117,121 117,489 117,857 118,224 118,592 
Other assets81,860 82,419 89,958 71,142 96,697 
Total Assets$6,003,695 $5,951,913 $5,904,055 $5,894,370 $5,758,640 
Liabilities
Deposits:
   Noninterest-bearing$1,373,125 $1,311,464 $1,279,932 $1,244,175 $1,176,990 
   Interest-bearing:
   Demand deposits1,135,848 1,139,033 1,070,004 1,077,749 1,027,201 
   Savings deposits1,347,448 1,332,910 1,301,219 1,265,038 1,188,003 
   Time deposits1,068,915 1,104,069 1,153,391 1,209,873 1,260,022 
Total deposits4,925,336 4,887,476 4,804,546 4,796,835 4,652,216 
Short-term borrowings
   Customer repurchase agreements312,458 296,642 311,316 316,003 295,956 
Net deferred tax liabilities— — 2,310 — 3,202 
Other liabilities84,796 90,499 90,407 89,847 106,160 
Total Liabilities5,322,590 5,274,617 5,208,579 5,202,685 5,057,534 


Stockholders' Equity
Preferred stock— — — — — 
Common stock47,619 47,619 47,619 47,619 47,619 
Capital surplus170,942 170,300 169,674 170,526 171,304 
Retained earnings641,826 627,463 613,553 600,396 589,988 
Cost of common stock in treasury(193,542)(183,303)(157,936)(142,484)(139,038)
Accumulated other comprehensive income:
Unrealized gain on securities available-for-sale
17,745 20,878 28,227 21,289 36,894 
Underfunded pension liability
(3,485)(5,661)(5,661)(5,661)(5,661)
Total Accumulated Other Comprehensive Income14,260 15,217 22,566 15,628 31,233 
Total Stockholders' Equity681,105 677,296 695,476 691,685 701,106 
Total Liabilities and Stockholders' Equity$6,003,695 $5,951,913 $5,904,055 $5,894,370 $5,758,640 
Regulatory Capital
Total CET 1 capital$555,532 $550,426 $561,317 $563,523 $557,641 
Total tier 1 capital555,532 550,426 561,317 563,523 557,641 
Total risk-based capital570,336 565,712 577,543 582,816 577,292 
Total risk-weighted assets3,453,893 3,417,020 3,421,764 3,362,595 3,446,774 




CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
December 31,September 30,June 30,March 31,December 31,
20212021202120212020
Commercial and industrial$346,184 $353,046 $358,583 $371,195 $372,989 
1-4 Family107,873 108,913 108,079 108,131 109,812 
Hotels311,315 297,341 290,119 293,176 294,464 
Multi-family215,677 215,307 212,715 212,561 215,671 
Non Residential Non-Owner Occupied639,818 664,365 653,264 649,683 641,351 
Non Residential Owner Occupied204,233 205,579 209,100 199,130 213,484 
Commercial real estate (1)
1,478,916 1,491,505 1,473,277 1,462,681 1,474,782 
Residential real estate (2)
1,548,965 1,506,572 1,521,102 1,532,907 1,587,694 
Home equity122,345 124,806 127,608 130,009 136,469 
Consumer40,901 43,296 45,184 47,224 47,688 
DDA overdrafts6,503 2,700 3,662 2,707 2,497 
Gross Loans$3,543,814 $3,521,925 $3,529,416 $3,546,723 $3,622,119 
Construction loans included in:
(1) - Commercial real estate loans$11,783 $19,360 $43,904 $39,101 $40,449 
(2) - Residential real estate loans17,252 19,059 20,838 22,129 27,078 



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

Three Months EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2021202120212021202020212020
Allowance for Loan Losses
Balance at beginning of period$18,751 $20,016 $24,076 $24,549 $24,867 $24,549 $11,589 
Charge-offs:
Commercial and industrial— — (211)(34)(9)(245)(843)
Commercial real estate(276)(392)(1,718)(1)(616)(2,387)(1,113)
Residential real estate(68)(18)(86)(93)(139)(265)(1,250)
Home equity(58)(47)(8)(64)(88)(177)(420)
Consumer(13)(3)(79)(147)(27)(242)(192)
DDA overdrafts(635)(633)(430)(453)(629)(2,151)(2,345)
Total charge-offs(1,050)(1,093)(2,532)(792)(1,508)(5,467)(6,163)
Recoveries:
Commercial and industrial31 69 25 46 74 171 91 
Commercial real estate27 18 15 164 150 224 525 
Residential real estate7 29 17 74 57 127 184 
Home equity6 58 3 23 47 90 136 
Consumer40 72 104 39 55 255 238 
DDA overdrafts354 307 308 413 333 1,382 1,467 
Total recoveries465 553 472 759 716 2,249 2,641 
Net charge-offs(585)(540)(2,060)(33)(792)(3,218)(3,522)
(Recovery of) provision for credit losses— (725)(2,000)(440)474 (3,165)10,722 
Impact of adopting ASC 326— — — — — — 5,760 
Balance at end of period$18,166 $18,751 $20,016 $24,076 $24,549 $18,166 $24,549 
Loans outstanding$3,543,814 $3,521,925 $3,529,416 $3,546,723 $3,622,119 
Allowance as a percent of loans outstanding0.51 %0.53 %0.57 %0.68 %0.68 %
Allowance as a percent of non-performing loans290.1 %243.1 %199.3 %194.5 %200.7 %
Average loans outstanding$3,522,272 $3,535,497 $3,541,165 $3,585,790 $3,635,673 $3,545,978 $3,641,610 
Net charge-offs (annualized) as a percent of average loans outstanding0.07 %0.06 %0.23 %— %0.09 %0.09 %0.10 %






CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, Continued
(Unaudited) ($ in 000s)
December 31,September 30,June 30,March 31,December 31,
20212021202120212020
Nonaccrual Loans
Residential real estate$2,809 $3,634 $2,482 $3,004 $2,968 
Home equity40 67 81 88 95 
Commercial and industrial996 531 820 1,200 768 
Commercial real estate2,373 3,355 6,383 7,792 8,401 
Consumer— — — — — 
   Total nonaccrual loans6,218 7,587 9,766 12,084 12,232 
Accruing loans past due 90 days or more43 127 278 295 — 
   Total non-performing loans6,261 7,714 10,044 12,379 12,232 
Other real estate owned1,319 1,335 1,309 1,625 1,650 
   Total non-performing assets$7,580 $9,049 $11,353 $14,004 $13,882 
Non-performing assets as a percent of loans and other real estate owned0.21 %0.26 %0.32 %0.39 %0.38 %
Past Due Loans
Residential real estate$5,321 $5,258 $5,453 $4,092 $5,993 
Home equity618 688 523 449 575 
Commercial and industrial336 455 721 1,358 1,241 
Commercial real estate22 441 498 508 625 
Consumer60 35 12 10 113 
DDA overdrafts489 390 417 212 341 
   Total past due loans$6,846 $7,267 $7,624 $6,629 $8,888 
Total past due loans as a percent of loans outstanding0.19 %0.21 %0.22 %0.19 %0.25 %
Troubled Debt Restructurings ("TDRs")
   Residential real estate$16,943 $16,910 $17,788 $18,572 $19,226 
   Home equity1,784 1,822 1,920 1,956 2,001 
   Commercial and industrial414 430 — — — 
   Commercial real estate1,914 1,937 3,076 4,615 4,638 
   Consumer225 221 203 211 277 
     Total TDRs$21,280 $21,320 $22,987 $25,354 $26,142 





CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)

Three Months Ended
December 31, 2021September 30, 2021December 31, 2020
AverageYield/AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,645,167 $15,692 3.78 %$1,648,921 $15,813 3.80 %$1,744,952 $17,623 4.02 %
Commercial, financial, and agriculture (2)
1,831,461 18,740 4.06 %1,836,604 17,344 3.75 %1,837,044 17,077 3.70 %
Installment loans to individuals (2), (3)
45,644 691 6.01 %49,972 714 5.67 %53,677 800 5.93 %
Previously securitized loans (4)
 *** 154  ***  *** 91  ***  *** 184  ***
Total loans3,522,272 35,277 3.97 %3,535,497 33,962 3.81 %3,635,673 35,684 3.90 %
Securities:   
Taxable1,171,340 5,753 1.95 %1,136,519 6,144 2.14 %976,897 5,500 2.24 %
Tax-exempt (5)
239,096 1,551 2.57 %245,551 1,590 2.57 %238,198 1,587 2.65 %
Total securities1,410,436 7,304 2.05 %1,382,070 7,734 2.22 %1,215,095 7,087 2.32 %
Deposits in depository institutions588,678 217 0.15 %544,843 196 0.14 %275,106 60 0.09 %
Total interest-earning assets5,521,386 42,798 3.08 %5,462,410 41,892 3.04 %5,125,874 42,831 3.32 %
Cash and due from banks98,111 101,058 73,900 
Premises and equipment, net74,847 75,956 76,956 
Goodwill and intangible assets117,349 117,719 118,855 
Other assets216,780 220,420 231,309 
Less: Allowance for loan losses(18,756)(20,407)(25,112)
       Total assets$6,009,717 $5,957,156 $5,601,782 
Liabilities:
Interest-bearing demand deposits$1,113,693 $131 0.05 %$1,093,243 $127 0.05 %$953,604 $171 0.07 %
Savings deposits1,338,747 173 0.05 %1,315,462 169 0.05 %1,148,717 225 0.08 %
Time deposits (2)
1,087,280 1,406 0.51 %1,126,553 1,659 0.58 %1,278,698 3,801 1.18 %
Short-term borrowings314,937 132 0.17 %282,722 115 0.16 %287,059 120 0.17 %
   Total interest-bearing liabilities3,854,657 1,842 0.19 %3,817,980 2,070 0.22 %3,668,078 4,317 0.47 %
Noninterest-bearing demand deposits1,394,599 1,356,745 1,130,084 
Other liabilities84,071  86,263  105,445  
Stockholders' equity676,390 696,168 698,175 
Total liabilities and
stockholders' equity$6,009,717 $5,957,156 $5,601,782 
Net interest income$40,956 $39,822 $38,514 
Net yield on earning assets2.94 %2.89 %2.99 %
(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of net loan fees have been included in interest income:
Loan fees, net$1,106 $1,120 $962 


(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$149 $154 $153 
Commercial, financial, and agriculture243 265 304 
Installment loans to individuals15 21 29 
Time deposits48 48 155 
$455 $488 $641 
(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
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)

Twelve Months Ended
December 31, 2021December 31, 2020
AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,658,710 $64,492 3.89 %$1,768,789 $74,452 4.21 %
Commercial, financial, and agriculture (2)
1,838,560 68,784 3.74 %1,816,658 72,128 3.97 %
Installment loans to individuals (2), (3)
48,708 2,831 5.81 %56,163 3,319 5.91 %
Previously securitized loans (4)
 *** 568  ***  *** 599  ***
Total loans3,545,978 136,675 3.85 %3,641,610 150,498 4.13 %
Securities:  
Taxable1,075,550 23,071 2.15 %890,771 23,355 2.62 %
Tax-exempt (5)
242,125 6,362 2.63 %164,740 4,954 3.01 %
Total securities1,317,675 29,433 2.23 %1,055,511 28,309 2.68 %
Deposits in depository institutions568,928 693 0.12 %230,043 492 0.21 %
Total interest-earning assets5,432,581 166,801 3.07 %4,927,164 179,299 3.64 %
Cash and due from banks92,847 76,173 
Premises and equipment, net76,069 77,670 
Goodwill and intangible assets117,899 119,471 
Other assets216,493 221,864 
Less: Allowance for loan losses(21,922)(22,770)
       Total assets$5,913,967 $5,399,572 
Liabilities:
Interest-bearing demand deposits$1,071,628 $504 0.05 %$912,306 $1,005 0.11 %
Savings deposits1,291,225 689 0.05 %1,071,727 1,591 0.15 %
Time deposits (2)
1,157,502 8,213 0.71 %1,329,841 19,927 1.50 %
Short-term borrowings298,413 489 0.16 %253,456 993 0.39 %
Long-term debt— — — %830 100 12.05 %
   Total interest-bearing liabilities3,818,768 9,895 0.26 %3,568,160 23,616 0.66 %
Noninterest-bearing demand deposits1,315,801 1,035,801 
Other liabilities84,377  100,166  
Stockholders' equity695,021 695,445 
Total liabilities and
Stockholders' equity$5,913,967 $5,399,572 
Net interest income$156,906 $155,683 
Net yield on earning assets2.89 %3.16 %
(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$3,550 $1,842 


(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$620 $630 
Commercial, financial, and agriculture1,198 2,445 
Installment loans to individuals87 143 
Time deposits193 622 
$2,098 $3,840 
(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 EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2021202120212021202020212020
Net Interest Income/Margin
Net interest income ("GAAP")$40,631 $39,488 $37,914 $37,540 $38,181 $155,573 $154,644 
Taxable equivalent adjustment325 334 343 331 333 1,333 1,039 
Net interest income, fully taxable equivalent
$40,956 $39,822 $38,257 $37,871 $38,514 $156,906 $155,683 
Average interest earning assets$5,521,386 $5,462,410 $5,459,564 $5,284,025 $5,125,874 $5,432,581 $4,927,164 
Net Interest Margin2.94 %2.89 %2.81 %2.91 %2.99 %2.89 %3.16 %
Accretion related to fair value adjustments(0.03)%(0.04)%(0.05)%(0.04)%(0.05)%(0.04)%(0.08)%
Net Interest Margin (excluding accretion)
2.91 %2.85 %2.76 %2.87 %2.94 %2.85 %3.08 %
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")11.34 %11.37 %11.78 %11.74 %12.18 %
Effect of goodwill and other intangibles, net(1.76)%(1.78)%(1.8)%(1.81)%(1.85)%
Tangible common equity to tangible assets
9.58 %9.59 %9.98 %9.93 %10.33 %
Return on Tangible Equity
Return on tangible equity ("GAAP")16.7 %15.7 %15.2 %13.5 %15.3 %15.3 %15.6 %
Impact of sale of VISA shares— — — — — — (2.4)%
Return on tangible equity, excluding sale of VISA shares16.7 %15.7 %15.2 %13.5 %15.3 %15.3 %13.2 %
Return on Assets
Return on assets ("GAAP")1.56 %1.53 %1.49 %1.38 %1.59 %1.49 %1.66 %
Impact of sale of VISA shares— — — — — — (0.24)%
Return on assets, excluding sale of VISA shares1.56 %1.53 %1.49 %1.38 %1.59 %1.49 %1.41 %