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Published: 2023-01-24 00:00:00 ET
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Filed by City Holding Company
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
NEWS RELEASE

For Immediate Release
January 24, 2023

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

City Holding Company Announces Record Annual Earnings

Charleston, West Virginia – City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $5.9 billion bank holding company headquartered in Charleston, West Virginia, today announced record net income of $102.1 million and record diluted earnings of $6.80 per share for the year ended December 31, 2022. For the year ended December 31, 2022, the Company achieved a return on assets of 1.71% and a return on tangible equity of 20.3%.

Net Interest Income

The Company’s net interest income increased from $155.6 million for the year ended December 31, 2021 to $180.0 million for the year ended December 31, 2022. The Company’s tax equivalent net interest income increased $24.4 million, or 15.6%, from $156.9 million for the year ended December 31, 2021 to $181.3 million for the year ended December 31, 2022. Net interest income increased by $12.0 million, $7.3 million and $3.4 million, respectively, due to increases in the yields on loans (net of loan fees and accretion), investments, and deposits in depository institutions, of 35 basis points, 47 basis points and 94 basis points, respectively, all due primarily to increases in the Federal Funds rate during 2022. In addition, higher average investment and loan balances ($189.2 million and $37.5 million, respectively) increased net interest income by $3.9 million and $1.8 million, respectively. These increases were partially offset by a decrease in loan fees associated with PPP loans of $3.5 million from 2021 and a decrease in accretion from fair value adjustments of $1.0 million. The Company’s reported net interest margin increased from 2.89% for the year ended December 31, 2021 to 3.33% for the year ended December 31, 2022.

The Company’s net interest income increased from $48.8 million during the third quarter of 2022 to $52.0 million during the fourth quarter of 2022. During the fourth quarter of 2022, the Company’s tax equivalent net interest income increased $3.3 million, or 6.7%, to $52.4 million from $49.1 million during the third quarter of 2022. Net interest income increased by $4.3 million and $1.9 million, respectively, due to an increase in loan (net of loan fees and accretion) and investment yields of 46 basis points and 50 basis points, respectively, due to recent increases in the Federal Funds rate. In addition, the yield on deposits in depository institutions also increased by 94 basis points which increased net interest income by


$0.4 million. These increases were partially offset by an increase in the cost of interest bearing liabilities (27 basis points) which decreased net interest income by $2.5 million and lower average deposits in depository institution balances ($126.7 million) which decreased net interest income by $0.7 million. The Company’s reported net interest margin increased from 3.57% for the third quarter of 2022 to 3.89% for the fourth quarter of 2022.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased from 0.21%, or $7.6 million, at December 31, 2021 to 0.17%, or $6.3 million at December 31, 2022. Total past due loans increased from $6.8 million, or 0.19% of total loans outstanding, at December 31, 2021 to $9.2 million, or 0.25% of total loans outstanding, at December 31, 2022.

As a result of the Company’s quarterly analysis of the adequacy of the Allowance for Credit Losses, the Company recorded a provision for credit losses of $0.5 million in the fourth quarter of 2022 and $0.5 million for the year ended December 31, 2022, compared to no provision for credit losses for the fourth quarter of 2021 and a recovery of credit losses of $3.2 million for year ended December 31, 2021. The provision for the year ended December 31, 2022, was a result of net charge-offs for the year that were partially offset by the repayment of a loan from a previous acquisition and release of the associated credit mark.

Non-interest Income

Non-interest income was $72.1 million for 2022 as compared to $69.6 million for 2021. The Company reported $1.6 million of unrealized fair value losses on the Company’s equity securities during 2022 compared to $0.3 million of realized security gains on the sale of investments and $0.5 million of unrealized fair value gains on the Company’s equity securities during 2021. Exclusive of these realized and unrealized gains and losses, non-interest income increased from $68.8 million for the year ended December 31, 2021 to $73.7 million for the year ended December 31, 2022. This increase was largely attributable to an increase of $2.8 million, or 10.9%, in service charges and a $1.7 million, or 42.7%, increase in bank owned life insurance due to higher death benefit proceeds received in 2022 compared to 2021. In addition, trust and investment management fee income and bankcard revenues each increased $0.4 million from the year ended December 31, 2021. These increases were partially offset by a decrease of $0.4 million in other income.

Non-interest income was $18.5 million during the quarter ended December 31, 2022 as compared to $17.6 million during the quarter ended December 31, 2021. During the fourth quarter of 2022, the Company reported $0.3 million of unrealized fair value losses on the Company’s equity securities compared to $0.1 million of unrealized fair value gains on the Company’s equity securities during the fourth quarter of 2021. Exclusive of these unrealized fair value gains and losses, non-interest income increased from $17.6 million for the fourth quarter of 2021 to $18.8 million for the fourth quarter of 2022. This increase was largely attributable to higher bank owned life insurance due to higher death benefit proceeds received ($1.1 million).

Non-interest Expenses

Non-interest expenses increased from $117.2 million for 2021 to $124.3 million for 2022. This increase was primarily due to an increase in salaries and employee benefit expenses ($4.7 million, due to higher salary adjustments during 2022, increased incentive compensation, and increased health insurance) and equipment and software related expenses ($1.3 million). In addition, occupancy related expenses increased $0.6 million, advertising increased $0.3 million, and merger related expenses increased $0.3 million.



Non-interest expenses increased $4.0 million (13.8%), from $28.6 million in the fourth quarter of 2021 to $32.6 million in the fourth quarter of 2022. This increase was largely due to an increase in salaries and employee benefits of $1.9 million due to increased incentive compensation, increased health insurance, and higher salary adjustments during 2022. In addition, other expenses increased $0.6 million; equipment and software related expenses increased $0.6 million; occupancy related expenses increased $0.3 million; and merger related expenses increased $0.3 million.

Balance Sheet Trends

Loans increased $102.4 million (2.9%) from December 31, 2021 to $3.64 billion at December 31, 2022. PPP loans of $6.6 million at December 31, 2021 were fully repaid during 2022. Excluding outstanding PPP loans (included in the commercial and industrial loan category), total loans increased $109.0 million, (3.1%), from December 31, 2021 to $3.64 billion at December 31, 2022. Residential real estate loans increased $144.6 million (9.3%); commercial and industrial loans increased $34.3 million (10.1%) (excluding PPP loans); home equity loans increased $12.0 million (9.8%); and consumer loans increased $7.9 million (19.3%). These increases were partially offset by decreases in commercial real estate loans ($86.6 million, or 5.9%).

Total average depository balances for the year ended December 31, 2022 increased $141.0 million, or 2.9%, as compared to the year ended December 31, 2021. Average savings deposits increased $123.5 million, average noninterest bearing demand deposits increased $113.6 million, and average interest bearing demand deposits increased $78.4 million. These increases were partially offset by a decrease in average time deposits of $174.5 million.

Income Tax Expense

The Company’s effective income tax rate for the quarter and year ended December 31, 2022 was 18.2% and 19.8%, respectively, compared to 21.1% and 20.8% for the comparable periods in 2021.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 74.9% and the loan to asset ratio was 62.0% at December 31, 2022. The Company maintained investment securities totaling 26.0% of assets as of the same date. The Company’s deposit mix is weighted toward checking and saving accounts that fund 67.7% of assets at December 31, 2022. Time deposits fund 15.1% of assets at December 31, 2022, 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 $462 million at December 31, 2022. Due primarily to unrealized security losses during the year ended December 31, 2022, the Company’s tangible equity ratio decreased from 9.6% at December 31, 2021 to 8.0% at December 30, 2022. However, unrealized security losses are not incorporated into measures of regulatory capital. At December 31, 2022, City National Bank’s Leverage Ratio was 8.55%, its Common Equity Tier I ratio was 13.88%, its Tier I Capital ratio was 13.88%, and its Total Risk-Based Capital ratio was 14.28%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On November 15, 2022, the Board approved a quarterly cash dividend of $0.65 cents per share payable January 31, 2023, to shareholders of record as of January 13, 2022. During the year ended December 31, 2022, the Company repurchased 325,000 common shares at a weighted average price of $81.50 per share as part of a one million share repurchase plan authorized by the Board of Directors in May 2022. As of December 31, 2022, the Company could repurchase approximately 817,000 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, 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 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, 2022 Form 10-K. The Company will continue to evaluate the impact of any subsequent events on the preliminary December 31, 2022 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,
2022202220222022202120222021
Earnings
Net Interest Income (fully taxable equivalent)$52,381 $49,108 $41,611 $38,239 $40,956 $181,339 $156,906 
Net Income available to common shareholders30,672 27,374 22,683 21,342 23,386 102,071 88,080 
Per Share Data
Earnings per share available to common shareholders:
   Basic$2.06 $1.84 $1.51 $1.41 $1.54 $6.81 $5.67 
   Diluted2.05 1.83 1.51 1.41 1.54 6.80 5.66 
Weighted average number of shares (in thousands):
   Basic14,756 14,776 14,888 14,974 15,026 14,847 15,381 
   Diluted14,785 14,800 14,909 15,002 15,056 14,873 15,407 
Period-end number of shares (in thousands)14,788 14,856 14,864 15,045 15,062 14,788 15,062 
Cash dividends declared$0.65 $0.65 $0.6 $0.6 $0.6 $2.5 $2.34 
Book value per share (period-end)39.08 36.91 39.83 42.03 45.22 39.08 45.22 
Tangible book value per share (period-end)31.25 29.09 31.99 34.27 37.44 31.25 37.44 
Market data:
   High closing price$101.94 $90.24 $83.07 $85.99 $83.14 $101.94 $87.41 
   Low closing price89.32 78.4 73.88 76.82 76.52 73.88 69.05 
   Period-end closing price93.09 88.69 79.88 78.7 81.79 93.09 81.79 
   Average daily volume (in
   thousands)		75 58 87 59 52 70 57 
Treasury share activity:
      Treasury shares repurchased
     (in thousands)		69 9 208 38 131 325 760 
      Average treasury share repurchase price
$93.12 $80.24 $78.33 $78.09 $78.93 $81.5 $77.21 
Key Ratios (percent)
Return on average assets2.08 %1.83 %1.51 %1.42 %1.56 %1.71 %1.49 %
Return on average tangible equity27.3 %21.8 %18.1 %15.3 %16.7 %20.3 %15.3 %
Yield on interest earning assets4.23 %3.72 %3.15 %2.94 %3.08 %3.51 %3.07 %
Cost of interest bearing liabilities0.48 %0.21 %0.15 %0.17 %0.19 %0.25 %0.26 %
Net Interest Margin3.89 %3.57 %3.04 %2.82 %2.94 %3.33 %2.89 %
Non-interest income as a percent of total revenue26.5 %27.2 %30.9 %32.4 %30.2 %28.6 %30.8 %
Efficiency Ratio45.3 %46.3 %50.5 %51.7 %48.3 %48.2 %51.3 %
Price/Earnings Ratio (a)11.30 12.08 13.23 13.93 13.27 13.67 14.42 


Capital (period-end)
Average Shareholders' Equity to Average Assets9.57 %10.32 %10.26 %11.25 %11.25 %
Tangible equity to tangible assets8.02 %7.41 %7.76 %8.75 %9.58 %
Consolidated City Holding Company risk based capital ratios (b):
   CET I16.23 %15.82 %15.85 %16.18 %16.08 %
   Tier I16.23 %15.82 %15.85 %16.18 %16.08 %
   Total16.62 %16.22 %16.26 %16.60 %16.51 %
   Leverage10.01 %9.74 %9.42 %9.58 %9.44 %
City National Bank risk based capital ratios (b):
   CET I13.88 %14.68 %14.80 %14.82 %14.35 %
   Tier I13.88 %14.68 %14.80 %14.82 %14.35 %
   Total14.28 %15.07 %15.21 %15.24 %14.78 %
   Leverage8.55 %9.05 %8.81 %8.80 %8.45 %
Other (period-end)
Branches94 94 94 94 94 
FTE909 903 915 897 905 
   Assets per FTE (in thousands)$6,467 $6,588 $6,825 $6,703 $6,637 
   Deposits per FTE (in thousands)5,357 5,492 5,621 5,574 5,445 
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) December 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 EndedTwelve Months Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
2022202220222022202120222021
Interest Income
   Interest and fees on loans$42,963 $38,493 $33,208 $31,874 $35,277 $146,538 $136,676 
   Interest on investment securities:
     Taxable11,119 9,556 7,547 6,223 5,753 34,445 23,071 
     Tax-exempt1,262 1,228 1,205 1,216 1,226 4,911 5,027 
   Interest on deposits in depository institutions
1,244 1,530 782 238 217 3,794 693 
Total Interest Income56,588 50,807 42,742 39,551 42,473 189,688 165,467 
Interest Expense
   Interest on deposits3,010 1,585 1,328 1,521 1,710 7,444 9,405 
   Interest on short-term borrowings
1,533 440 124 114 132 2,211 489 
Total Interest Expense4,543 2,025 1,452 1,635 1,842 9,655 9,894 
Net Interest Income52,045 48,782 41,290 37,916 40,631 180,033 155,573 
Provision for (recovery of) credit losses500 730 — (756)— 474 (3,165)
Net Interest Income After Provision for (Recovery of) Credit Losses51,545 48,052 41,290 38,672 40,631 179,559 158,738 
Non-Interest Income
Net gains on sale of investment securities4 — — — — 4 312 
Unrealized (losses) gains recognized on securities still held(262)1 (601)(723)52 (1,585)504 
   Service charges7,056 7,487 7,067 6,725 7,057 28,335 25,539 
   Bankcard revenue6,791 7,052 7,062 6,444 6,762 27,349 26,987 
   Trust and investment management fee income
2,343 2,158 2,100 2,197 2,198 8,798 8,415 
   Bank owned life insurance1,813 754 978 2,014 748 5,559 3,895 
   Other income791 792 1,243 791 799 3,617 3,989 
Total Non-Interest Income18,536 18,244 17,849 17,448 17,616 72,077 69,641 
Non-Interest Expense
   Salaries and employee benefits17,148 17,398 16,413 15,577 15,299 66,536 61,850 
   Occupancy related expense2,725 2,664 2,620 2,709 2,429 10,718 10,083 
   Equipment and software related expense
3,341 2,949 2,732 2,769 2,733 11,791 10,486 
   FDIC insurance expense413 416 409 435 400 1,673 1,583 
   Advertising802 854 951 798 582 3,405 3,091 
   Bankcard expenses1,356 1,405 1,665 1,606 1,576 6,032 6,455 


   Postage, delivery, and statement mailings
597 578 551 636 590 2,362 2,323 
   Office supplies441 466 427 410 378 1,744 1,547 
   Legal and professional fees610 532 525 527 405 2,194 2,279 
   Telecommunications627 651 754 584 702 2,616 2,858 
   Repossessed asset losses (gains), net of expenses54 (3)(32)40 (29)59 (57)
   Merger related expenses268 — — — — 268 — 
   Other expenses4,203 3,591 3,674 3,436 3,559 14,904 14,687 
Total Non-Interest Expense32,585 31,501 30,689 29,527 28,624 124,302 117,185 
Income Before Income Taxes37,496 34,795 28,450 26,593 29,623 127,334 111,194 
   Income tax expense6,824 7,421 5,767 5,251 6,237 25,263 23,114 
Net Income Available to Common Shareholders$30,672 $27,374 $22,683 $21,342 $23,386 $102,071 $88,080 
Distributed earnings allocated to common shareholders$9,521 $9,564 $8,837 $8,943 $8,949 $36,619 $34,901 
Undistributed earnings allocated to common shareholders20,857 17,555 13,643 12,199 14,211 64,494 52,336 
Net earnings allocated to common shareholders$30,378 $27,119 $22,480 $21,142 $23,160 $101,113 $87,237 
Average common shares outstanding14,756 14,776 14,888 14,974 15,026 14,847 15,381 
Shares for diluted earnings per share14,785 14,800 14,909 15,002 15,056 14,873 15,407 
Basic earnings per common share$2.06 $1.84 $1.51 $1.41 $1.54 $6.81 $5.67 
Diluted earnings per common share$2.05 $1.83 $1.51 $1.41 $1.54 $6.80 $5.66 



CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Assets
Cash and due from banks$68,333 $65,051 $90,449 $100,877 $101,804 
Interest-bearing deposits in depository institutions131,667 233,302 606,530 497,171 532,827 
Cash and cash equivalents200,000 298,353 696,979 598,048 634,631 
Investment securities available-for-sale, at fair value1,505,520 1,489,392 1,497,227 1,409,513 1,408,165 
Other securities23,807 24,372 24,383 24,785 25,531 
Total investment securities1,529,327 1,513,764 1,521,610 1,434,298 1,433,696 
Gross loans3,646,258 3,628,752 3,566,758 3,559,905 3,543,814 
Allowance for credit losses(17,108)(17,011)(17,015)(17,280)(18,166)
Net loans3,629,150 3,611,741 3,549,743 3,542,625 3,525,648 
Bank owned life insurance120,674 121,283 120,528 120,522 120,978 
Premises and equipment, net70,786 71,686 72,388 73,067 74,071 
Accrued interest receivable18,287 17,256 16,342 16,101 15,627 
Net deferred tax assets44,884 49,888 30,802 18,001 63 
Intangible assets115,735 116,081 116,428 116,774 117,121 
Other assets149,263 147,716 118,375 92,331 81,860 
Total Assets$5,878,106 $5,947,768 $6,243,195 $6,011,767 $6,003,695 
Liabilities
Deposits:
   Noninterest-bearing$1,351,415 $1,429,281 $1,531,660 $1,357,266 $1,373,125 
   Interest-bearing:
   Demand deposits1,233,482 1,160,970 1,189,056 1,191,492 1,135,848 
   Savings deposits1,396,869 1,427,785 1,435,645 1,425,528 1,347,448 
   Time deposits888,100 939,769 985,567 1,024,559 1,068,915 
Total deposits4,869,866 4,957,805 5,141,928 4,998,845 4,925,336 
Short-term borrowings
   Customer repurchase agreements290,964 304,807 402,368 288,483 312,458 
Other liabilities139,424 136,868 106,906 92,009 84,796 
Total Liabilities5,300,254 5,399,480 5,651,202 5,379,337 5,322,590 


Stockholders' Equity
Preferred stock— — — — — 
Common stock47,619 47,619 47,619 47,619 47,619 
Capital surplus170,980 170,138 169,557 170,206 170,942 
Retained earnings706,696 685,657 667,933 654,138 641,826 
Cost of common stock in treasury(215,955)(209,644)(209,133)(194,819)(193,542)
Accumulated other comprehensive income:
Unrealized gain on securities available-for-sale
(128,066)(141,997)(80,498)(41,229)17,745 
Underfunded pension liability
(3,422)(3,485)(3,485)(3,485)(3,485)
Total Accumulated Other Comprehensive Income(131,488)(145,482)(83,983)(44,714)14,260 
Total Stockholders' Equity577,852 548,288 591,993 632,430 681,105 
Total Liabilities and Stockholders' Equity$5,878,106 $5,947,768 $6,243,195 $6,011,767 $6,003,695 
Regulatory Capital
Total CET 1 capital$598,068 $582,213 $564,158 $565,048 $555,532 
Total tier 1 capital598,068 582,213 564,158 565,048 555,532 
Total risk-based capital612,654 596,708 578,657 579,807 570,336 
Total risk-weighted assets3,685,207 3,679,511 3,558,249 3,492,920 3,453,893 




CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Commercial and industrial$373,890 $375,735 $360,481 $337,384 $346,184 
1-4 Family116,192 109,710 108,765 108,424 107,873 
Hotels340,404 355,001 337,910 314,902 311,315 
Multi-family174,786 186,440 203,856 209,359 215,677 
Non Residential Non-Owner Occupied585,964 569,369 551,240 637,092 639,818 
Non Residential Owner Occupied174,961 177,673 180,188 200,180 204,233 
Commercial real estate (1)
1,392,307 1,398,193 1,381,959 1,469,957 1,478,916 
Residential real estate (2)
1,693,523 1,678,770 1,651,005 1,588,860 1,548,965 
Home equity134,317 130,837 125,742 121,460 122,345 
Consumer48,806 41,902 44,580 39,778 40,901 
DDA overdrafts3,415 3,315 2,991 2,466 6,503 
Gross Loans$3,646,258 $3,628,752 $3,566,758 $3,559,905 $3,543,814 
Construction loans included in:
(1) - Commercial real estate loans$4,130 $4,125 $6,767 $14,877 $11,783 
(2) - Residential real estate loans21,122 19,333 18,751 16,253 17,252 



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,
2022202220222022202120222021
Allowance for Loan Losses
Balance at beginning of period$17,011 $17,015 $17,280 $18,166 $18,751 $18,166 $24,549 
Charge-offs:
Commercial and industrial(120)(408)— (34)— (562)(245)
Commercial real estate(31)— (24)— (276)(55)(2,387)
Residential real estate(66)(93)(56)(50)(68)(265)(265)
Home equity(189)(71)(19)— (58)(279)(177)
Consumer(15)(16)(9)(23)(13)(63)(242)
DDA overdrafts(670)(719)(604)(631)(635)(2,624)(2,151)
Total charge-offs(1,091)(1,307)(712)(738)(1,050)(3,848)(5,467)
Recoveries:
Commercial and industrial94 149 32 59 31 334 171 
Commercial real estate120 9 25 53 27 207 224 
Residential real estate49 1 4 45 7 99 127 
Home equity34 2 3 17 6 56 90 
Consumer31 29 19 28 40 107 255 
DDA overdrafts360 383 364 406 354 1,513 1,382 
Total recoveries688 573 447 608 465 2,316 2,249 
Net charge-offs(403)(734)(265)(130)(585)(1,532)(3,218)
Provision for (recovery of) credit losses500 730 — (756)— 474 (3,165)
Balance at end of period$17,108 $17,011 $17,015 $17,280 $18,166 $17,108 $18,166 
Loans outstanding$3,646,258 $3,628,752 $3,566,758 $3,559,905 $3,543,814 
Allowance as a percent of loans outstanding0.47 %0.47 %0.48 %0.49 %0.51 %
Allowance as a percent of non-performing loans317.3 %320.5 %292.6 %331.3 %290.1 %
Average loans outstanding$3,648,996 $3,596,523 $3,559,713 $3,527,393 $3,522,272 $3,583,526 $3,545,978 
Net charge-offs (annualized) as a percent of average loans outstanding0.04 %0.08 %0.03 %0.01 %0.07 %0.04 %0.09 %






CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, Continued
(Unaudited) ($ in 000s)
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Nonaccrual Loans
Residential real estate$1,969 $2,089 $1,561 $1,786 $2,809 
Home equity55 140 54 99 40 
Commercial and industrial1,015 785 1,360 1,069 996 
Commercial real estate2,166 2,293 2,783 2,241 2,373 
Consumer— — — — — 
   Total nonaccrual loans5,205 5,307 5,758 5,195 6,218 
Accruing loans past due 90 days or more187 — 58 21 43 
   Total non-performing loans5,392 5,307 5,816 5,216 6,261 
Other real estate owned909 1,071 946 1,099 1,319 
   Total non-performing assets$6,301 $6,378 $6,762 $6,315 $7,580 
Non-performing assets as a percent of loans and other real estate owned0.17 %0.18 %0.19 %0.18 %0.21 %
Past Due Loans
Residential real estate$7,091 $3,452 $5,298 $4,976 $5,321 
Home equity650 521 282 505 618 
Commercial and industrial234 221 130 56 336 
Commercial real estate710 221 46 744 22 
Consumer100 27 49 32 60 
DDA overdrafts391 561 430 392 489 
   Total past due loans$9,176 $5,003 $6,235 $6,705 $6,846 
Total past due loans as a percent of loans outstanding0.25 %0.14 %0.17 %0.19 %0.19 %
Troubled Debt Restructurings ("TDRs")
   Residential real estate$15,857 $15,657 $16,022 $16,182 $16,943 
   Home equity1,286 1,614 1,649 1,694 1,784 
   Commercial and industrial333 354 381 397 414 
   Commercial real estate102 104 107 1,890 1,914 
   Consumer64 68 80 194 225 
     Total TDRs$17,642 $17,797 $18,239 $20,357 $21,280 





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

Three Months Ended
December 31, 2022September 30, 2022December 31, 2021
AverageYield/AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,824,327 $18,910 4.11 %$1,792,365 $17,640 3.90 %$1,645,167 $15,692 3.78 %
Commercial, financial, and agriculture (2)
1,773,937 23,346 5.22 %1,759,567 20,092 4.53 %1,831,461 18,740 4.06 %
Installment loans to individuals (2), (3)
50,732 646 5.05 %44,591 683 6.08 %45,644 691 6.01 %
Previously securitized loans (4)
 *** 63  ***  *** 78  ***  *** 154  ***
Total loans3,648,996 42,965 4.67 %3,596,523 38,493 4.25 %3,522,272 35,277 3.97 %
Securities:   
Taxable1,315,453 11,118 3.35 %1,359,207 9,557 2.79 %1,171,340 5,753 1.95 %
Tax-exempt (5)
211,326 1,597 3.00 %215,219 1,555 2.87 %239,096 1,551 2.57 %
Total securities1,526,779 12,715 3.30 %1,574,426 11,112 2.80 %1,410,436 7,304 2.05 %
Deposits in depository institutions162,732 1,245 3.04 %289,460 1,529 2.1 %588,678 217 0.15 %
Total interest-earning assets5,338,507 56,925 4.23 %5,460,409 51,134 3.72 %5,521,386 42,798 3.08 %
Cash and due from banks69,223 81,202 98,111 
Premises and equipment, net71,482 72,196 74,847 
Goodwill and intangible assets115,952 116,297 117,349 
Other assets332,855 278,527 216,780 
Less: Allowance for loan losses(17,332)(17,224)(18,756)
       Total assets$5,910,687 $5,991,407 $6,009,717 
Liabilities:
Interest-bearing demand deposits$1,150,327 $684 0.24 %$1,151,122 $272 0.09 %$1,113,693 $131 0.05 %
Savings deposits1,412,246 829 0.23 %1,431,591 358 0.10 %1,338,747 173 0.05 %
Time deposits (2)
916,845 1,497 0.65 %964,447 956 0.39 %1,087,280 1,406 0.51 %
Short-term borrowings303,599 1,534 2.00 %270,310 440 0.65 %314,937 132 0.17 %
   Total interest-bearing liabilities3,783,017 4,544 0.48 %3,817,470 2,026 0.21 %3,854,657 1,842 0.19 %
Noninterest-bearing demand deposits1,428,013 1,455,123 1,394,599 
Other liabilities134,075  100,303  84,071  
Stockholders' equity565,582 618,511 676,390 
Total liabilities and
stockholders' equity$5,910,687 $5,991,407 $6,009,717 
Net interest income$52,381 $49,108 $40,956 
Net yield on earning assets3.89 %3.57 %2.94 %
(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of net loan fees have been included in interest income:
Loan fees, net (includes PPP fees)$(41)$308 $1,106 


(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$67 $64 $149 
Commercial, financial, and agriculture135 103 243 
Installment loans to individuals4 7 15 
Time deposits21 21 48 
$227 $195 $455 
(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, 2022December 31, 2021
AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,755,772 $68,208 3.88 %$1,658,710 $64,492 3.89 %
Commercial, financial, and agriculture (2)
1,781,132 75,390 4.23 %1,838,560 68,784 3.74 %
Installment loans to individuals (2), (3)
46,622 2,567 5.51 %48,708 2,831 5.81 %
Previously securitized loans (4)
 *** 373  ***  *** 568  ***
Total loans3,583,526 146,538 4.09 %3,545,978 136,675 3.85 %
Securities:  
Taxable1,288,252 34,445 2.67 %1,075,550 23,071 2.15 %
Tax-exempt (5)
218,588 6,217 2.84 %242,125 6,362 2.63 %
Total securities1,506,840 40,662 2.7 %1,317,675 29,433 2.23 %
Deposits in depository institutions357,184 3,794 1.06 %568,928 693 0.12 %
Total interest-earning assets5,447,550 190,994 3.51 %5,432,581 166,801 3.07 %
Cash and due from banks88,581 92,847 
Premises and equipment, net72,590 76,069 
Goodwill and intangible assets116,469 117,899 
Other assets271,685 216,493 
Less: Allowance for loan losses(17,687)(21,922)
       Total assets$5,979,188 $5,913,967 
Liabilities:
Interest-bearing demand deposits$1,150,007 $1,234 0.11 %$1,071,628 $504 0.05 %
Savings deposits1,414,727 1,544 0.11 %1,291,225 689 0.05 %
Time deposits (2)
983,046 4,666 0.47 %1,157,502 8,213 0.71 %
Short-term borrowings284,611 2,211 0.78 %298,413 489 0.16 %
   Total interest-bearing liabilities3,832,391 9,655 0.25 %3,818,768 9,895 0.26 %
Noninterest-bearing demand deposits1,429,415 1,315,801 
Other liabilities98,553  84,377  
Stockholders' equity618,829 695,021 
Total liabilities and
Stockholders' equity$5,979,188 $5,913,967 
Net interest income$181,339 $156,906 
Net yield on earning assets3.33 %2.89 %
(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 (includes PPP fees)$568 $3,550 


(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$298 $620 
Commercial, financial, and agriculture642 1,198 
Installment loans to individuals45 87 
Time deposits83 193 
$1,068 $2,098 
(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,
2022202220222022202120222021
Net Interest Income/Margin
Net interest income ("GAAP")$52,045 $48,782 $41,290 $37,916 $40,631 $180,033 $155,573 
Taxable equivalent adjustment336 326 321 323 325 1,306 1,333 
Net interest income, fully taxable equivalent
$52,381 $49,108 $41,611 $38,239 $40,956 $181,339 $156,906 
Average interest earning assets$5,338,507 $5,460,409 $5,485,604 $5,507,397 $5,521,386 $5,447,550 $5,432,581 
Net Interest Margin3.89 %3.57 %3.04 %2.82 %2.94 %3.33 %2.89 %
Accretion related to fair value adjustments(0.02)%(0.01)%(0.02)%(0.03)%(0.03)%(0.02)%(0.04)%
Net Interest Margin (excluding accretion)
3.87 %3.56 %3.02 %2.79 %2.91 %3.31 %2.85 %
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")9.83 %9.22 %9.48 %10.52 %11.34 %
Effect of goodwill and other intangibles, net(1.81)%(1.81)%(1.72)%(1.77)%(1.76)%
Tangible common equity to tangible assets
8.02 %7.41 %7.76 %8.75 %9.58 %