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Published: 2024-04-23 15:49:25 ET
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EX-99.1 2 chco03-31x2024exhibit991.htm EX-99.1 Document








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
April 23, 2024

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 $6.3 billion bank holding company headquartered in Charleston, West Virginia, today announced net income of $29.5 million and diluted earnings of $1.97 per share for the quarter ended March 31, 2024. For the quarter ended March 31, 2024, the Company achieved a return on assets of 1.92% and a return on tangible equity of 22.7%.

Net Interest Income

The Company’s net interest income decreased approximately $0.2 million, or 0.4%, from $54.7 million during the fourth quarter of 2023 to $54.4 million during the first quarter of 2024. The Company’s tax equivalent net interest income decreased approximately $0.2 million, or 0.4%, from $54.9 million for the fourth quarter of 2023 to $54.6 million for the first quarter of 2024. Due to an increase in the cost of interest bearing liabilities (20 basis points), net interest income declined $1.7 million. Additionally, lower yields on investment securities lowered net interest income by $0.4 million and an increase in the average balance of interest bearing liabilities ($48.4 million) decreased net interest income by $0.2 million. These decreases were partially offset by an increase in average loan balances of $46.6 million, which increased net interest income by $0.7 million, an increase of 15 basis points on loans yields which increased net interest income by $0.7 million, and an increase of 23 basis points on deposits in depository institutions yield which increased net interest income by $0.6 million. The Company’s reported net interest margin declined from 3.98% for the fourth quarter of 2023 to 3.95% for the first quarter of 2024.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned increased from 0.21%, or $8.6 million, at December 31, 2023 to 0.28%, or $11.5 million, at March 31, 2024. Total past due loans decreased from $10.9 million, or 0.27% of total loans outstanding, at December 31, 2023, to $6.7 million, or 0.16% of total loans outstanding, at March 31, 2024.



As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses, the Company recorded a recovery of credit losses of $0.2 million in the first quarter of 2024, compared to a provision for credit losses of $2.9 million for the comparable period in 2023, and a recovery of credit losses of $0.3 million for the fourth quarter of 2023. The recovery of credit losses was primarily related to a decline in loan balances from the fourth quarter of 2023 and a reduction in the loss rate of residential real estate loans that were partially offset by net charge-offs during the first quarter of 2024.

Non-interest Income

Non-interest income was $17.9 million during the quarter ended March 31, 2024, as compared to $18.7 million during the quarter ended March 31, 2023. During the first quarter of 2024, the Company reported $0.2 million of unrealized fair value gains on the Company’s equity securities compared to $0.8 million of realized gains from the sale of investment securities and $0.4 million of unrealized fair value gains on the Company’s equity securities during the first quarter of 2023.

Exclusive of these items, non-interest income increased $0.6 million, or 2.9%, from $17.5 million for the first quarter of 2023 to $18.1 million for the first quarter of 2024. This increase was largely attributable to an increase of $0.5 million, or 7.2%, in service charges, an increase of $0.4 million, or 16.4%, in trust and investment management fee income, and a $0.2 million, or 3.0%, increase in bankcard revenues. These increases were partially offset by a decrease in other income of $0.6 million.

Non-interest Expenses

Non-interest expenses decreased $2.7 million, or 7.1%, from $38.6 million in the first quarter of 2023 to $35.9 million in the first quarter of 2024. During the quarter ended March 31, 2023, the Company recognized $5.6 million of acquisition and integration expenses (included in other expenses) associated with the completed acquisition of Citizens Commerce Bancshares, Inc. (“Citizens”) and its principal banking subsidiary, Citizens Commerce Bank, on March 10, 2023. Excluding these expenses, non-interest expenses increased $2.9 million from $33.0 million in the quarter ended March 31, 2023 to $35.9 million in the quarter ended March 31, 2024. This increase was largely due to an increase in salaries and employee benefits of $1.2 million due to salary adjustments and increased health insurance costs. In addition, bankcard expenses increased $0.5 million, other expenses increased $0.5 million, and FDIC insurance expense increased $0.3 million.

Balance Sheet Trends

Loans declined $34.1 million (0.8%) from December 31, 2023 to $4.09 billion at March 31, 2024. Commercial and industrial loans decreased $19.2 million and commercial real estate loans decreased $14.6 million during the quarter ended March 31, 2024. These decreases were partially offset by an increase in home equity loans of $4.1 million (2.5%).

Period-end deposit balances increased $121.5 million from December 31, 2023, to March 31, 2024. Total average depository balances remained flat from the quarter ended December 31, 2023 to the quarter ended March 31, 2024, at $4.93 billion. Average savings deposit balances decreased $20.5 million, average interest-bearing demand deposit balances decreased $15.8 million, and average noninterest-bearing demand deposit balances decreased $11.5 million. These decreases were essentially offset by an increase in average time deposit balances of $47.2 million.

Income Tax Expense

The Company’s effective income tax rate for the first quarter of 2024 was 19.5% compared to 20.1% for the year ended December 31, 2023, and 20.5%, for the quarter ended March 31, 2023.



Capitalization and Liquidity

The Company’s loan to deposit ratio was 80.9% and the loan to asset ratio was 64.8% at March 31, 2024. The Company maintained investment securities totaling 21.8% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 62.6% of assets at March 31, 2024. Time deposits fund 17.4% of assets at March 31, 2024, with only 13.0% of time deposits having balances of more than $250,000, reflecting the core retail orientation of the Company.

City Holding Company is the parent company of City National Bank of West Virginia (“City National”). City National has borrowing facilities with the Federal Reserve Bank and the Federal Home Loan Bank that can be accessed as necessary to fund operations and to provide contingency funding. These borrowing facilities are collateralized by various loans held on City National’s balance sheet. As of March 31, 2024, City National had the capacity to borrow an additional $1.5 billion from these existing borrowing facilities. In addition, approximately $660 million of City National’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $720 million of City National’s investment securities unpledged at March 31, 2024.

The Company continues to be strongly capitalized with tangible equity of $520 million at March 31, 2024. The Company’s tangible equity ratio declined slightly from 8.6% at December 31, 2023 to 8.5% at March 31, 2024. At March 31, 2024, City National’s Leverage Ratio was 9.4%, its Common Equity Tier I ratio was 14.6%, its Tier I Capital ratio was 14.6%, and its Total Risk-Based Capital ratio was 15.1%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On March 27, 2024, the Board of Directors of the Company approved a quarterly cash dividend of $0.715 per share payable April 30, 2024, to shareholders of record as of April 15, 2024. On January 31, 2024, the Company announced that the Board of Directors authorized the Company to buy back up to 1,000,000 shares of its common stock (approximately 7% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders (the "2024 Program"). No time limit was placed on the duration of the share repurchase program. As part of this authorization, the Company terminated its previous repurchase program that was approved in May 2022. The Company had repurchased 849,681 shares under the 2022 program. During the quarter ended March 31, 2024, the Company repurchased 36,000 common shares at a weighted average price of $100.24 per share as part of the 2024 Program. As of March 31, 2024, the Company could repurchase 964,000 additional shares under the 2024 Program.

City National operates 97 branches across West Virginia, Kentucky, Virginia, and Ohio.

On April 8, 2024, City National announced that it had been ranked #1 in customer satisfaction for consumer banking in the North Central Region in the J.D. Power 2024 U.S. Retail Banking Satisfaction Study. City National has claimed the top honor in five of the last seven years and outscored all other banks in West Virginia, Kentucky, Ohio, Indiana, and Michigan.

Forward-Looking Information

This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those


discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, especially in the communities and markets in which we conduct our business; (2) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for credit losses may not be sufficient to absorb actual losses in our loan portfolio, and risk from concentrations in our loan portfolio; (3) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (4) changes in the interest rate environment; (5) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (6) changes in technology and increased competition, including competition from non-bank financial institutions; (7) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (8) difficulty growing loan and deposit balances; (9) our ability to effectively execute our business plan, including with respect to future acquisitions; (10) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries, including changes in deposit insurance premiums; (11) deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions; (12) regulatory enforcement actions and adverse legal actions; (13) difficulty attracting and retaining key employees; and (14) other economic, competitive, technological, operational, governmental, regulatory, and market factors affecting our operations. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. Further, the Company is required to evaluate subsequent events through the filing of its March 31, 2024 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary March 31, 2024 results and will adjust the amounts if necessary.







CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
Earnings
Net Interest Income (fully taxable equivalent)$54,647 $54,889 $55,855 $55,757 $53,767 
Net Income available to common shareholders29,523 27,452 29,839 32,733 24,341 
Per Share Data
Earnings per share available to common shareholders:
   Basic$1.98 $1.84 $1.98 $2.16 $1.63 
   Diluted1.97 1.84 1.98 2.16 1.63 


Weighted average number of shares (in thousands):
   Basic14,795 14,758 14,922 14,994 14,818 
   Diluted14,819 14,785 14,945 15,012 14,844 
Period-end number of shares (in thousands)14,825 14,832 14,901 15,007 15,260 
Cash dividends declared$0.72 $0.72 $0.72 $0.65 $0.65 
Book value per share (period-end)46.02 45.65 40.94 42.39 42.66 
Tangible book value per share (period-end)35.10 34.69 29.98 31.50 31.91 
Market data:
   High closing price$111.40 $115.77 $99.49 $97.92 $100.27 
   Low closing price99.28 87.43 87.51 83.57 89.17 
   Period-end closing price104.22 110.26 90.35 89.99 90.88 
   Average daily volume (in
   thousands)		63 62 62 80 84 
Treasury share activity:
      Treasury shares repurchased
     (in thousands)		36 70 109 269 218 
      Average treasury share repurchase price
$100.24 $90.61 $89.33 $88.93 $92.10 
Key Ratios (percent)
Return on average assets1.92 %1.78 %1.94 %2.12 %1.63 %
Return on average tangible equity22.7 %23.5 %24.1 %27.4 %19.9 %
Yield on interest earning assets5.33 %5.23 %5.08 %4.87 %4.66 %
Cost of interest bearing liabilities1.90 %1.70 %1.46 %1.22 %0.86 %
Net Interest Margin3.95 %3.98 %4.03 %4.00 %4.05 %
Non-interest income as a percent of total revenue25.0 %25.6 %24.6 %27.1 %24.7 %
Efficiency Ratio49.2 %47.4 %46.4 %44.6 %45.7 %
Price/Earnings Ratio (a)13.17 14.95 11.40 10.40 13.95 
Capital (period-end)
Average Shareholders' Equity to Average Assets11.09 %10.27 %10.73 %10.38 %10.31 %
Tangible equity to tangible assets8.46 %8.57 %7.55 %7.90 %8.05 %
Consolidated City Holding Company risk based capital ratios (b):
   CET I16.15 %15.70 %15.36 %15.47 %15.64 %
   Tier I16.15 %15.70 %15.36 %15.47 %15.64 %
   Total16.69 %16.23 %15.89 %16.01 %16.18 %
   Leverage10.45 %10.23 %10.05 %9.80 %10.20 %
City National Bank risk based capital ratios (b):
   CET I14.60 %13.79 %14.73 %14.82 %14.08 %
   Tier I14.60 %13.79 %14.73 %14.82 %14.08 %
   Total15.14 %14.32 %15.27 %15.36 %14.63 %
   Leverage9.42 %8.94 %9.61 %9.36 %9.18 %


Other (period-end)
Branches97 98 99 99 99 
FTE953 957 966 963 958 
   Assets per FTE (in thousands)$6,625 $6,447 $6,291 $6,383 $6,483 
   Deposits per FTE (in thousands)5,304 5,157 5,120 5,208 5,362 
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) March 31, 2024 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,
20242023202320232023
Interest Income
   Interest and fees on loans$59,128 $57,755 $55,582 $52,352 $47,004 
   Interest on investment securities:
     Taxable12,040 12,336 12,432 11,794 11,773 
     Tax-exempt830 832 910 950 1,162 
   Interest on deposits in depository institutions
1,570 941 1,265 2,585 1,591 
Total Interest Income73,568 71,864 70,189 67,681 61,530 
Interest Expense
   Interest on deposits14,097 12,479 10,551 8,567 5,690 
   Interest on short-term borrowings
3,621 3,693 2,990 2,963 2,381 
Interest on FHLB long-term advances
1,423 1,026 1,034 649 — 
Total Interest Expense19,141 17,198 14,575 12,179 8,071 
Net Interest Income54,427 54,666 55,614 55,502 53,459 
Provision for (recovery of) credit losses(180)(300)200 425 2,918 
Net Interest Income After Provision for (Recovery of) Credit Losses54,607 54,966 55,414 55,077 50,541 
Non-Interest Income
Net (losses) gains on sale of investment securities(1)(4,951)(730)— 773 
Unrealized (losses) gains recognized on securities still held(152)365 — (294)361 
   Service charges7,035 7,158 7,124 6,906 6,563 
   Bankcard revenue6,800 7,109 7,058 7,190 6,603 
   Trust and investment management fee income
2,623 2,563 2,409 2,339 2,252 
   Bank owned life insurance927 1,218 807 3,208 804 
   Other income716 774 742 952 1,326 
Total Non-Interest Income17,948 14,236 17,410 20,301 18,682 
Non-Interest Expense
   Salaries and employee benefits18,878 18,772 18,289 18,429 17,673 
   Occupancy related expense2,840 2,917 2,950 2,811 2,640 
   Equipment and software related expense
2,929 2,824 2,830 2,883 3,092 
   FDIC insurance expense711 868 919 690 445 
   Advertising867 588 790 974 760 


   Bankcard expenses2,039 2,014 2,188 1,736 1,509 
   Postage, delivery, and statement mailings
666 615 668 596 647 
   Office supplies453 477 457 591 420 
   Legal and professional fees482 478 529 558 470 
   Telecommunications600 614 568 623 606 
   Repossessed asset losses (gains), net of expenses229 (50)40 22 16 
   Other expenses5.206 4.992 4.8 4.848 10.345 
Total Non-Interest Expense35,900 35,109 35,028 34,761 38,623 
Income Before Income Taxes36,655 34,093 37,796 40,617 30,600 
   Income tax expense7,132 6,641 7,957 7,884 6,259 
Net Income Available to Common Shareholders$29,523 $27,452 $29,839 $32,733 $24,341 
Distributed earnings allocated to common shareholders$10,505 $10,508 $10,554 $9,668 $9,833 
Undistributed earnings allocated to common shareholders18,757 16,696 19,004 22,774 14,294 
Net earnings allocated to common shareholders$29,262 $27,204 $29,558 $32,442 $24,127 
Average common shares outstanding14,795 14,758 14,922 14,994 14,818 
Shares for diluted earnings per share14,819 14,785 14,945 15,012 14,844 
Basic earnings per common share$1.98 $1.84 $1.98 $2.16 $1.63 
Diluted earnings per common share$1.97 $1.84 $1.98 $2.16 $1.63 



CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
Assets
Cash and due from banks$121,853 $123,033 $67,402 $69,622 $76,223 
Interest-bearing deposits in depository institutions196,829 33,243 43,314 161,659 226,587 
Cash and cash equivalents318,682 156,276 110,716 231,281 302,810 
Investment securities available-for-sale, at fair value1,347,657 1,338,137 1,358,219 1,419,933 1,456,259 
Other securities30,681 30,966 29,022 29,262 24,728 
Total investment securities1,378,338 1,369,103 1,387,241 1,449,195 1,480,987 
Gross loans4,091,788 4,125,923 4,007,482 3,922,142 3,894,686 
Allowance for credit losses(22,310)(22,745)(23,128)(22,751)(22,724)
Net loans4,069,478 4,103,178 3,984,354 3,899,391 3,871,962 
Bank owned life insurance118,875 118,122 117,979 117,173 124,238 
Premises and equipment, net71,623 72,146 72,682 73,118 73,430 
Accrued interest receivable21,759 20,290 19,223 17,973 18,395 
Net deferred tax assets43,969 42,216 58,811 46,944 42,146 
Intangible assets161,832 162,568 163,461 163,426 164,099 
Other assets129,627 124,153 161,659 148,333 132,715 
Total Assets$6,314,183 $6,168,052 $6,076,126 $6,146,834 $6,210,782 
Liabilities
Deposits:
   Noninterest-bearing$1,359,072 $1,342,804 $1,333,474 $1,373,106 $1,420,990 
   Interest-bearing:
   Demand deposits1,330,268 1,291,011 1,319,783 1,337,445 1,356,017 
   Savings deposits1,266,211 1,259,457 1,282,642 1,343,571 1,397,523 
   Time deposits1,100,250 1,040,990 1,009,235 960,941 962,235 
Total deposits5,055,801 4,934,262 4,945,134 5,015,063 5,136,765 
Short-term borrowings
FHLB short-term advances
— 25,000 — — — 
   Customer repurchase agreements304,941 309,856 278,671 271,714 293,256 
FHLB long-term advances150,000 100,000 100,000 100,000 — 
Other liabilities121,210 121,868 142,187 123,865 129,711 
Total Liabilities5,631,952 5,490,986 5,465,992 5,510,642 5,559,732 


Stockholders' Equity
Preferred stock— — — — — 
Common stock47,619 47,619 47,619 47,619 47,619 
Capital surplus175,747 177,424 177,113 176,746 177,529 
Retained earnings799,024 780,299 763,425 744,248 721,727 
Cost of common stock in treasury(218,555)(217,737)(211,430)(201,973)(179,436)
Accumulated other comprehensive loss:
Unrealized loss on securities available-for-sale(119,023)(107,958)(163,171)(127,026)(112,967)
Underfunded pension liability
(2,581)(2,581)(3,422)(3,422)(3,422)
Total Accumulated Other Comprehensive Loss(121,604)(110,539)(166,593)(130,448)(116,389)
Total Stockholders' Equity682,231 677,066 610,134 636,192 651,050 
Total Liabilities and Stockholders' Equity$6,314,183 $6,168,052 $6,076,126 $6,146,834 $6,210,782 
Regulatory Capital
Total CET 1 capital$644,235 $627,579 $615,798 $605,661 $606,675 
Total tier 1 capital644,235 627,579 615,798 605,661 606,675 
Total risk-based capital665,707 648,646 637,245 626,730 627,718 
Total risk-weighted assets3,989,171 3,996,688 4,009,798 3,913,870 3,878,994 




CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
Commercial and industrial$407,770 $426,950 $424,647 $417,847 $390,861 
1-4 Family202,378 206,237 197,081 184,919 181,442 
Hotels354,929 357,142 321,236 324,745 327,554 
Multi-family186,555 189,165 192,329 191,483 195,042 
Non Residential Non-Owner Occupied682,609 680,590 651,498 612,703 617,357 
Non Residential Owner Occupied232,440 240,328 222,544 222,852 223,096 
Commercial real estate (1)
1,658,911 1,673,462 1,584,688 1,536,702 1,544,491 
Residential real estate (2)
1,786,764 1,788,150 1,768,358 1,746,618 1,737,604 
Home equity171,292 167,201 159,630 151,012 151,341 
Consumer63,556 65,246 65,586 65,201 66,994 
DDA overdrafts3,495 4,914 4,573 4,762 3,395 
Gross Loans$4,091,788 $4,125,923 $4,007,482 $3,922,142 $3,894,686 
Construction loans included in:
(1) - Commercial real estate loans$6,651 $2,459 $2,533 $3,361 $4,715 
(2) - Residential real estate loans19,709 23,066 20,056 20,470 25,224 



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

Three Months Ended
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
Allowance for Loan Losses
Balance at beginning of period$22,745 $23,128 $22,751 $22,724 $17,108 
Charge-offs:
Commercial and industrial(306)(84)— (69)— 
Commercial real estate(31)(5)(256)(117)(3)
Residential real estate(19)(68)(88)(20)(32)
Home equity(27)(21)(112)(200)(67)
Consumer(115)(6)(10)(109)(62)
DDA overdrafts(356)(416)(422)(357)(450)
Total charge-offs(854)(600)(888)(872)(614)
Recoveries:
Commercial and industrial25 70 597 86 83 
Commercial real estate11 17 74 28 158 
Residential real estate49 4 28 5 10 
Home equity9 13 18 12 4 
Consumer98 45 27 28 23 
DDA overdrafts407 368 321 315 398 
Total recoveries599 517 1,065 474 676 
Net charge-offs(255)(83)177 (398)62 
Provision for (recovery of) credit losses(180)(300)200 425 2,918 
PCD Loan Reserves— — — — 2,811 
Adoption of ASU 2022-02— — — — (175)
Balance at end of period$22,310 $22,745 $23,128 $22,751 $22,724 
Loans outstanding$4,091,788$4,125,923$4,007,482$3,922,142$3,894,686
Allowance as a percent of loans outstanding0.55 %0.55 %0.58 %0.58 %0.58 %
Allowance as a percent of non-performing loans206.8 %290.6 %440.1 %405.5 %400.1 %
Average loans outstanding$4,092,529 $4,045,889 $3,956,871 $3,896,284 $3,700,194 
Net charge-offs (recoveries) (annualized) as a percent of average loans outstanding0.02 %0.01 %(0.02)%0.04 %(0.01)%






CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, Continued
(Unaudited) ($ in 000s)
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
Nonaccrual Loans
Residential real estate$3,452 $2,849 $2,839 $2,774 $2,700 
Home equity121 111 75 24 35 
Commercial and industrial3,405 2,211 716 741 994 
Commercial real estate3,807 2,387 1,355 1,821 1,931 
Consumer1 — 1 36 19 
   Total nonaccrual loans10,786 7,558 4,986 5,396 5,679 
Accruing loans past due 90 days or more— 270 269 215 — 
   Total non-performing loans10,786 7,828 5,255 5,611 5,679 
Other real estate owned752 731 720 874 843 
   Total non-performing assets$11,538 $8,559 $5,975 $6,485 $6,522 
Non-performing assets as a percent of loans and other real estate owned0.28 %0.21 %0.15 %0.17 %0.17 %
Past Due Loans
Residential real estate$5,035 $8,059 $6,247 $5,884 $4,783 
Home equity1,028 1,235 1,278 784 551 
Commercial and industrial26 435 568 142 98 
Commercial real estate138 715 1,478 238 148 
Consumer75 129 84 57 3 
DDA overdrafts406 364 398 341 276 
   Total past due loans$6,708 $10,937 $10,053 $7,446 $5,859 
Total past due loans as a percent of loans outstanding0.16 %0.27 %0.25 %0.19 %0.15 %





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

Three Months Ended
March 31, 2024December 31, 2023March 31, 2023
AverageYield/AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,953,647 $24,148 4.97 %$1,945,185 $23,673 4.83 %$1,840,828 $20,007 4.41 %
Commercial, financial, and agriculture (2)
2,070,054 33,980 6.60 %2,031,089 33,038 6.45 %1,795,309 26,248 5.93 %
Installment loans to individuals (2), (3)
68,828 999 5.84 %69,615 1,046 5.96 %64,057 749 4.74 %
Total loans4,092,529 59,127 5.81 %4,045,889 57,757 5.66 %3,700,194 47,004 5.15 %
Securities:
Taxable1,200,310 12,040 4.03 %1,194,448 12,336 4.10 %1,322,060 11,773 3.61 %
Tax-exempt (4)
160,847 1,051 2.63 %153,204 1,053 2.73 %204,957 1,471 2.91 %
Total securities1,361,157 13,091 3.87 %1,347,652 13,389 3.94 %1,527,017 13,244 3.52 %
Deposits in depository institutions115,953 1,570 5.45 %71,624 941 5.21 %160,031 1,590 4.03 %
Total interest-earning assets5,569,639 73,788 5.33 %5,465,165 72,087 5.23 %5,387,242 61,838 4.66 %
Cash and due from banks98,966 87,633 67,975 
Premises and equipment, net71,954 72,435 71,422 
Goodwill and intangible assets162,257 163,220 124,546 
Other assets306,278 342,669 327,442 
Less: Allowance for loan losses(23,142)(23,532)(18,143)
       Total assets$6,185,952 $6,107,590 $5,960,484 
Liabilities:
Interest-bearing demand deposits$1,283,868 $3,439 1.08 %$1,299,683 $3,467 1.06 %$1,234,981 $1,741 0.57 %
Savings deposits1,254,253 2,273 0.73 %1,274,726 2,369 0.74 %1,376,317 1,348 0.40 %
Time deposits (2)
1,073,083 8,385 3.14 %1,025,870 6,644 2.57 %902,583 2,601 1.17 %
Short-term borrowings313,623 3,621 4.64 %312,941 3,693 4.68 %281,861 2,381 3.43 %
FHLB long-term advances136,813 1,423 4.18 %100,000 1,026 4.07 %— — — %
   Total interest-bearing liabilities4,061,640 19,141 1.90 %4,013,220 17,199 1.70 %3,795,742 8,071 0.86 %
Noninterest-bearing demand deposits1,322,540 1,334,021 1,420,676 
Other liabilities115,589 132,862 129,411 
Stockholders' equity686,183 627,487 614,655 
Total liabilities and
stockholders' equity$6,185,952 $6,107,590 $5,960,484 
Net interest income$54,647 $54,888 $53,767 
Net yield on earning assets3.95 %3.98 %4.05 %
(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$133 $201 $518 


(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$45 $78 $76 
Commercial, financial, and agriculture1,065 702 $177 
Installment loans to individuals6 26 $4 
Time deposits63 131 $9 
$1,179 $937 $266 
(3) Includes the Company’s consumer and DDA overdrafts loan categories.
(4) 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,
20242023202320232023
Net Interest Income/Margin
Net interest income ("GAAP")$54,427 $54,666 $55,614 $55,502 $53,459 
Taxable equivalent adjustment220 223 243 255 308 
Net interest income, fully taxable equivalent
$54,647 $54,889 $55,857 $55,757 $53,767 
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")10.81 %10.98 %10.04 %10.35 %10.48 %
Effect of goodwill and other intangibles, net(2.35)(2.41)(2.49)(2.45)(2.43)
Tangible common equity to tangible assets
8.46 %8.57 %7.55 %7.90 %8.05 %


Commercial Loan Information (period end)
Commercial SectorTotal % of Total LoansAverage DSCAverage LTV
Natural Gas Extraction$25,143 0.61%3.71N/A
Natural Gas Distribution12,8000.315.46N/A
Masonry Contractors22,8040.551.0484%
Sheet Metal Work Manufacturing25,8870.631.2268%
Beer & Ale Merchant Wholesalers25,4140.623.28N/A
Gasoline Stations with Convenience Stores43,9851.074.7665%
Lessors of Residential Builidings & Dwellings429,61510.421.8966%
1-4 Family185,4364.502.9767%
Multi-Family177,7264.311.8464%
Lessors of Nonresidential Buildings600,85314.581.7065%
Office Buildings125,9223.051.6462%
Lessors of Mini-Warehouses & Self-Storage Units50,9201.241.4361%
Assisted Living Facilities27,2730.661.3861%
Hotels & Motels355,3438.621.4563%
Average BalanceMedian Balance
Commercial Loans$446 $93 
Commercial Real Estate Loans511120




CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued
(Unaudited) ($ in 000s, except per share data)
Estimated Uninsured Deposits by Deposit Type
March 31, 2024
December 31, 2023
Noninterest-Bearing Demand Deposits16 %16 %
Interest-Bearing Deposits
   Demand Deposits12 %7 %
   Savings Deposits12 %11 %
   Time Deposits15 %13 %
Total Deposits14 %12 %
The amounts listed above represent management's best estimate as of the respective period shown of uninsured deposits (either with balances above $250,000 or not collateralized by investment securities).

CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued
(Unaudited) ($ in 000s, except per share data)
Net Growth in DDA Accounts
YearNew DDA AccountsNet Number of New AccountsPercentage
20247,9351,1210.4 %
2023*24,5184,4501.9 %
202228,4424,5441.9 %
202132,8008,8603.8 %
202030,3606,7403.0 %
201932,0403,7171.7 %
2018*30,4004,3102.2 %
201728,5252,7111.4 %
* - amounts exclude accounts added in connection with the acquisitions of Poage Bankshares, Inc. (2018), Farmers Deposit Bancorp, Inc.(2018) and Citizens Commerce Bancshares, Inc. (2023).