City Holding Company Announces Record Annual Earnings

CHARLESTON, W.Va.--(BUSINESS WIRE)--City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.5 billion bank holding company headquartered in Charleston, West Virginia, today announced record net income of $117.1 million and record diluted earnings of $7.89 per share for the year ended December 31, 2024. For the year ended December 31, 2024, the Company achieved a return on assets of 1.85% and a return on tangible equity of 21.2%. “For the fifth time in the last seven years, City was once again honored to be 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,” said City’s President and CEO Charles Hageboeck. “We believe that this award goes further than just providing excellent service to our customers. It reflects how our employees interact and support their customers, communities, and fellow employees on a daily basis. This dedication by our employees enables us to produce excellent results year after year. “As we start 2025, City’s strengths from a year ago remain in place. We continue to have an exceptional customer franchise, an extraordinary team, an enviable cost of funds, strong asset quality, and some competitors who seem focused on making their customers banking experiences more difficult.” Net Interest Income The Company’s net interest income increased from $219.2 million for the year ended December 31, 2023 to $220.2 million for the year ended December 31, 2024. The Company’s tax equivalent net interest income increased $0.8 million, or 0.4%, from $220.3 million for the year ended December 31, 2023 to $221.1 million for the year ended December 31, 2024. Due to increases in loan yields (net of loan fees and accretion) of 40 basis points and an increase in average loan balances ($185.5 million), net interest income increased $15.2 million and $10.3 million, respectively. Additionally, an increase in the yield on investment securities of 34 basis points increased net interest income by $4.7 million and a 72 basis point increase on deposits in depository institutions increased net interest income by $1.0 million. The acquisition of Citizens Commerce Bancshares, Inc., and its subsidiary, Citizens Commerce Bank (“Citizens”) of Versailles, Kentucky, during the first quarter of 2023 added $2.8 million of net interest income during the year ended December 31, 2024. These increases were partially offset by an increase in the cost of interest bearing liabilities (78 basis points) which decreased net interest income by $25.5 million and higher balances of interest bearing liabilities ($193.8 million) that lowered net interest income by $7.9 million. The Company’s reported net interest margin decreased from 4.01% for the year ended December 31, 2023 to 3.86% for the year ended December 31, 2024. The Company’s net interest income remained flat at $55.6 million for both the fourth quarter of 2024 and the third quarter of 2024. The Company’s tax equivalent net interest income also remained flat at $55.8 million for both the fourth quarter of 2024 and the third quarter of 2024. Due to an increase in balances of interest bearing liabilities ($133.0 million), net interest income decreased $1.2 million and a decrease in the yield on loans (17 basis points, net of loan fees and accretion), decreased net interest income $1.2 million. Additionally, lower yields on investment securities (19 basis points) lowered net interest income $0.6 million. These decreases were essentially offset by an increase in the balance of deposits in depository institution balances ($113.7 million) that increased net interest income $1.6 million and an increase in loan balances ($82.4 million) which increased net interest income $1.3 million. The Company’s reported net interest margin decreased from 3.87% for the third quarter of 2024 to 3.75% for the fourth 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 0.35%, or $15.0 million at December 31, 2024. This increase is primarily due to a commercial loan for a movie theater (originated in 2014) that experienced operating weakness during the third quarter of the year ended December 31, 2024. As a result, the Company recognized a $2.0 million charge-off for this loan and moved the remaining balance to nonaccrual. Total past due loans decreased from $10.9 million, or 0.27% of total loans outstanding, at December 31, 2023 to $8.8 million, or 0.21% of total loans outstanding, at December 31, 2024. 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 $0.3 million for the fourth quarter of 2024 and a provision for credit losses of $1.8 million for the year ended December 31, 2024, compared to a $0.3 million recovery of credit losses for the fourth quarter and a provision for credit losses of $3.2 million for the year ended December 31, 2023. The provision for credit losses recognized during 2024 related primarily to the aforementioned movie theater ($2.0 million), loan growth during the year ending December 31, 2024, and an increase in the loss rate for residential real estate loans. These increases were partially offset by $1.7 million of reversals of reserves due primarily to payoffs on purchase credit deteriorated loans during the year ending December 31, 2024. Additionally, the provision for credit losses for the year ended December 31, 2023 included $2.0 million of credit loss expense associated with loans acquired from Citizens. Non-interest Income Non-interest income was $73.3 million for the year ended December 31, 2024, as compared to $70.6 million for the year ended December 31, 2023. In 2024, the Company reported $2.8 million of realized security losses and $0.2 million of unrealized security gains on the Company’s equity securities as compared to $4.9 million realized security losses and $0.4 million of unrealized security gains on the Company’s equity securities in 2023. The realized security losses during both 2024 and 2023, which lowered diluted earnings per share by $0.15 and $0.25, respectively, and were executed to reposition a portion of our investment securities. Exclusive of these realized and unrealized gains and losses, non-interest income increased $0.9 million, or 1.2%, from $75.1 million for 2023 to $76.0 million for 2024. This increase was largely attributable to an increase of $1.7 million, or 17.7%, in trust and investment management fee income and an increase of $1.5 million, or 5.3%, from service charges. Additionally, bankcard revenues increased $0.5 million, or 1.9%, from the year ended December 31, 2023. These increases were partially offset by a decrease of $2.0 million from bank owned life insurance (lower death benefits) and $0.8 million in other income. During the quarter ended December 31, 2024, non-interest income was $16.1 million as compared to $14.2 million during the quarter ended December 31, 2023. During the fourth quarter of 2024, the Company reported $2.8 million of realized security losses and $0.4 million of unrealized fair value losses on the Company’s equity securities as compared to $5.0 million of realized security losses and $0.4 million of unrealized fair value gains on the Company’s equity securities during the fourth quarter of 2023. Exclusive of these realized and unrealized gains and losses, non-interest income increased from $18.8 million for the fourth quarter of 2023 to $19.3 million for the fourth quarter of 2024. Higher service charges of $0.5 million, or 7.3%, and trust and investment management fee income of $0.4 million, or 15.0%, were partially offset by lower death benefits from bank owned life insurance of $0.4 million. Non-interest Expenses Non-interest expenses increased $3.7 million, or 2.6%, from $143.5 million for 2023 to $147.2 million for 2024. This increase was primarily due to an increase in salaries and employee benefit expenses ($3.2 million due to salary adjustments (4.1%) and increased health insurance (5.0%)) and equipment and software related expense ($1.5 million). In addition, bankcard expense increased $1.1 million and advertising expenses increased $0.7 million. These expenses were partially offset by lower other expenses of $2.9 million which were primarily related to acquisition and integration expenses associated with the Citizens acquisition completed in 2023 ($5.2 million). In the fourth quarter of 2024, non-interest expenses increased $1.8 million (5.2%) from $35.1 million in the fourth quarter of 2023 to $36.9 million. This increase was largely due to an increase in equipment and software related expense of $0.9 million and salaries and employee benefits of $0.7 million. In addition, advertising expenses increased $0.3 million. Balance Sheet Trends Loans increased $148.9 million (3.6%) from December 31, 2023 to $4.27 billion at December 31, 2024. Commercial real estate loans increased $95.2 million (5.7%); residential real estate loans increased $35.5 million (2.0%); and home equity loans increased $32.0 million (19.1%). These increases were partially offset by decreases in consumer loans ($7.4 million) and commercial and industrial loans ($7.1 million). Period-end deposit balances increased $209.9 million, or 4.3%, from December 31, 2023, to December 31, 2024. Average depository balances for the year ended December 31, 2024 increased $59.2 million from the year ended December 31, 2023 to $5.04 billion. Average time deposits increased $180.4 million and average interest bearing demand deposits increased $32.3 million. These increases were partially offset by a decrease in average savings deposits of $100.8 million and a decrease in noninterest bearing demand deposits of $52.7 million. The cost of interest bearing liabilities for the Company for the quarter ending December 31, 2024 were as follows: interest bearing demand deposits – 115 basis points; savings deposits – 73 basis points; and time deposits – 367 basis points. Income Tax Expense The Company’s effective income tax rates for the quarter and year ended December 31, 2024 were 16.9% and 19.0%, respectively, compared to 19.5% and 20.1% for the comparable periods in 2023. Capitalization and Liquidity The Company’s gross loan to deposit ratio was 83.1% and its gross loan to asset ratio was 66.2% at December 31, 2024. The Company maintained investment securities totaling 22.5% of assets as of the same date. The Company’s deposit mix is weighted toward checking and saving accounts that fund 60.3% of total assets at December 31, 2024. Time deposits fund 19.3% of total assets at December 31, 2024, with only 14.7% 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 December 31, 2024, City National had the capacity to borrow an additional $1.5 billion from these existing borrowing facilities. In addition, approximately $695 million of City National’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $755 million of City National’s investment securities unpledged at December 31, 2024. The Company continues to be strongly capitalized with tangible equity of $571 million at December 31, 2024. The Company’s tangible equity ratio increased from 8.6% at December 31, 2023 to 9.1% at December 31, 2024. This increase was attributable to the Company’s net income for 2024 less dividends. At December 31, 2024, City National’s Leverage Ratio was 8.7%, its Common Equity Tier I ratio was 13.6%, its Tier I Capital ratio was 13.6%, and its Total Risk-Based Capital ratio was 14.1%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation. On November 20, 2024, the Company’s Board of Directors approved a quarterly cash dividend of $0.79 cents per share payable January 31, 2025, to shareholders of record as of January 15, 2025. During the year ended December 31, 2024, the Company repurchased 179,000 common shares at a weighted average price of $100.24 per share as part of a one million share repurchase plan authorized by the Board of Directors in January 2024. As of December 31, 2024, the Company could repurchase an additional approximately 821,000 shares under the current plan. As a result of lower share repurchases in 2024, City Holding Company had a cash balance of $117 million at December 31, 2024 and annual expenditures are approximately $45 million (based on the Company’s operating expenses, contractual obligations and current quarterly dividend ($0.79 per share). City National operates 97 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, 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 December 31, 2024 Form 10-K. The Company will continue to evaluate the impact of any subsequent events on the preliminary December 31, 2024 results and will adjust the amounts if necessary. CITY HOLDING COMPANY AND SUBSIDIARIES Financial Highlights (Unaudited) Three Months Ended Twelve Months Ended December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 December 31,2024 December 31,2023 Earnings Net Interest Income (fully taxable equivalent) $ 55,790 $ 55,823 $ 54,847 $ 54,647 $ 54,889 $ 221,108 $ 220,266 Net Income available to common shareholders 28,654 29,809 29,115 29,523 27,452 117,101 114,365 Per Share Data Earnings per share available to common shareholders: Basic $ 1.94 $ 2.02 $ 1.96 $ 1.98 $ 1.84 $ 7.91 $ 7.62 Diluted 1.94 2.02 1.96 1.97 1.84 7.89 7.61 Weighted average number of shares (in thousands): Basic 14,634 14,633 14,695 14,795 14,758 14,676 14,868 Diluted 14,655 14,654 14,710 14,819 14,785 14,697 14,891 Period-end number of shares (in thousands) 14,705 14,702 14,701 14,825 14,832 14,705 14,832 Cash dividends declared $ 0.79 $ 0.79 $ 0.72 $ 0.72 $ 0.72 $ 3.01 $ 2.73 Book value per share (period-end) $ 49.69 $ 50.42 $ 46.71 $ 46.02 $ 45.65 $ 49.69 $ 45.65 Tangible book value per share (period-end) 38.80 39.49 35.75 35.10 34.69 38.80 34.69 Market data: High closing price $ 134.35 $ 123.29 $ 106.43 $ 111.40 $ 115.77 $ 134.35 $ 115.77 Low closing price 113.37 104.53 98.35 99.28 87.43 98.35 83.57 Period-end closing price 118.48 117.39 106.25 104.22 110.26 118.48 110.26 Average daily volume (in thousands) 53 56 57 63 62 57 72 Treasury share activity: Treasury shares repurchased (in thousands) - - 142 36 70 179 667 Average treasury share repurchase price $ - $ - $ 100.24 $ 100.24 $ 90.61 $ 100.24 $ 90.21 Key Ratios (percent) Return on average assets 1.75 % 1.87 % 1.85 % 1.92 % 1.78 % 1.85 % 1.87 % Return on average tangible equity 19.4 % 20.9 % 22.2 % 22.7 % 23.5 % 21.2 % 23.8 % Yield on interest earning assets 5.31 % 5.43 % 5.38 % 5.33 % 5.23 % 5.36 % 4.96 % Cost of interest bearing liabilities 2.14 % 2.13 % 2.06 % 1.90 % 1.70 % 2.06 % 1.32 % Net Interest Margin 3.75 % 3.87 % 3.87 % 3.95 % 3.98 % 3.86 % 4.01 % Non-interest income as a percent of total revenue 25.8 % 26.5 % 25.3 % 25.0 % 25.6 % 25.7 % 25.6 % Efficiency Ratio 48.4 % 48.8 % 49.3 % 48.5 % 47.4 % 48.8 % 46.0 % Price/Earnings Ratio (a) 15.27 14.54 13.53 13.17 14.95 14.99 14.47 Capital (period-end) Average Shareholders' Equity to Average Assets 11.46 % 11.45 % 10.90 % 11.09 % 10.27 % Tangible equity to tangible assets 9.06 % 9.26 % 8.50 % 8.46 % 8.57 % Consolidated City Holding Company risk based capital ratios (b): CET I 16.51 % 16.64 % 16.10 % 16.15 % 15.70 % Tier I 16.51 % 16.64 % 16.10 % 16.15 % 15.70 % Total 17.02 % 17.17 % 16.64 % 16.69 % 16.23 % Leverage 10.62 % 10.59 % 10.30 % 10.45 % 10.23 % City National Bank risk based capital ratios (b): CET I 13.55 % 16.00 % 15.17 % 14.60 % 13.79 % Tier I 13.55 % 16.00 % 15.17 % 14.60 % 13.79 % Total 14.05 % 16.52 % 15.72 % 15.14 % 14.32 % Leverage 8.72 % 10.17 % 9.68 % 9.42 % 8.94 % Other (period-end) Branches 97 97 97 97 98 FTE 941 940 948 953 957 Assets per FTE (in thousands) $ 6,864 $ 6,845 $ 6,689 $ 6,625 $ 6,447 Deposits per FTE (in thousands) 5,467 5,428 5,345 5,304 5,157 (a) The price/earnings ratio is computed based on annualized quarterly earnings. (b) December 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 Twelve Months Ended December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 December 31,2024 December 31,2023 Interest Income Interest and fees on loans $ 61,701 $ 61,407 $ 59,285 $ 59,128 $ 57,755 $ 241,521 $ 212,693 Interest on investment securities: Taxable 13,742 14,403 13,947 12,040 12,336 54,132 48,335 Tax-exempt 789 824 838 830 832 3,281 3,854 Interest on deposits in depository institutions 2,588 1,417 1,920 1,570 941 7,495 6,382 Total Interest Income 78,820 78,051 75,990 73,568 71,864 306,429 271,264 Interest Expense Interest on deposits 17,463 17,072 15,897 14,097 12,479 64,529 37,287 Interest on short-term borrowings 4,191 3,788 3,900 3,621 3,693 15,500 12,027 Interest on FHLB long-term advances 1,586 1,586 1,568 1,423 1,026 6,163 2,709 Total Interest Expense 23,240 22,446 21,365 19,141 17,198 86,192 52,023 Net Interest Income 55,580 55,605 54,625 54,427 54,666 220,237 219,241 Provision for (Recovery of) credit losses 300 1,200 500 (180 ) (300 ) 1,820 3,243 Net Interest Income After Provision for (Recovery of) Credit Losses 55,280 54,405 54,125 54,607 54,966 218,417 215,998 Non-Interest Income Net losses on sale of investment securities (2,812 ) (12 ) - (1 ) (4,951 ) (2,825 ) (4,908 ) Unrealized (losses) gains recognized on equity securities still held (390 ) 353 364 (152 ) 365 175 432 Service charges 7,679 7,531 6,980 7,035 7,158 29,225 27,751 Bankcard revenue 7,109 7,346 7,245 6,800 7,109 28,500 27,960 Trust and investment management fee income 2,947 2,923 2,762 2,623 2,563 11,255 9,563 Bank owned life insurance 855 1,435 775 927 1,218 3,992 6,037 Other income 739 772 785 716 774 3,012 3,794 Total Non-Interest Income 16,127 20,348 18,911 17,948 14,236 73,334 70,629 Non-Interest Expense Salaries and employee benefits 19,489 19,245 18,751 18,878 18,772 76,363 73,163 Occupancy related expense 2,696 2,774 2,856 2,840 2,917 11,166 11,318 Equipment and software related expense 3,683 3,431 3,130 2,929 2,824 13,173 11,629 FDIC insurance expense 729 734 718 711 868 2,892 2,922 Advertising 901 1,081 972 867 588 3,821 3,112 Bankcard expenses 1,909 2,271 2,290 2,039 2,014 8,509 7,447 Postage, delivery, and statement mailings 684 666 714 666 615 2,730 2,526 Office supplies 444 480 432 453 477 1,809 1,945 Legal and professional fees 629 500 551 482 478 2,162 2,035 Telecommunications 510 578 624 600 614 2,312 2,411 Repossessed asset (gains) losses, net of expenses (10 ) 21 6 229 (50 ) 246 28 Other expenses 5,261 5,857 5,728 5,206 4,992 22,052 24,985 Total Non-Interest Expense 36,925 37,638 36,772 35,900 35,109 147,235 143,521 Income Before Income Taxes 34,482 37,115 36,264 36,655 34,093 144,516 143,106 Income tax expense 5,828 7,306 7,149 7,132 6,641 27,415 28,741 Net Income Available to Common Shareholders $ 28,654 $ 29,809 $ 29,115 $ 29,523 $ 27,452 $ 117,101 $ 114,365 Distributed earnings allocated to common shareholders $ 11,511 $ 11,506 $ 10,418 $ 10,505 $ 10,508 $ 43,857 $ 40,121 Undistributed earnings allocated to common shareholders 16,881 18,025 18,439 18,757 16,696 72,175 73,208 Net earnings allocated to common shareholders $ 28,392 $ 29,531 $ 28,857 $ 29,262 $ 27,204 $ 116,032 $ 113,329 Average common shares outstanding 14,634 14,633 14,695 14,795 14,758 14,676 14,868 Shares for diluted earnings per share 14,655 14,654 14,710 14,819 14,785 14,697 14,891 Basic earnings per common share $ 1.94 $ 2.02 $ 1.96 $ 1.98 $ 1.84 $ 7.91 $ 7.62 Diluted earnings per common share $ 1.94 $ 2.02 $ 1.96 $ 1.97 $ 1.84 $ 7.89 $ 7.61 CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated Balance Sheets ($ in 000s) (Unaudited) (Unaudited) (Unaudited) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Assets Cash and due from banks $ 117,580 $ 161,333 $ 141,168 $ 121,853 $ 123,033 Interest-bearing deposits in depository institutions 107,809 132,616 76,818 196,829 33,243 Cash and cash equivalents 225,389 293,949 217,986 318,682 156,276 Investment securities available-for-sale, at fair value 1,421,306 1,462,795 1,456,685 1,347,657 1,338,137 Other securities 29,803 30,859 31,237 30,681 30,966 Total investment securities 1,451,109 1,493,654 1,487,922 1,378,338 1,369,103 Gross loans 4,274,776 4,157,830 4,112,873 4,091,788 4,125,923 Allowance for credit losses (21,922 ) (21,832 ) (22,688 ) (22,310 ) (22,745 ) Net loans 4,252,854 4,135,998 4,090,185 4,069,478 4,103,178 Bank owned life insurance 120,887 120,061 119,650 118,875 118,122 Premises and equipment, net 70,539 70,651 71,041 71,623 72,146 Accrued interest receivable 20,650 21,785 21,826 21,759 20,290 Net deferred tax assets 41,704 33,497 43,602 43,969 42,216 Goodwill and intangible assets 160,044 160,640 161,236 161,832 162,568 Other assets 116,283 104,079 127,947 129,627 124,153 Total Assets $ 6,459,459 $ 6,434,314 $ 6,341,395 $ 6,314,183 $ 6,168,052 Liabilities Deposits: Noninterest-bearing $ 1,344,449 $ 1,339,538 $ 1,354,660 $ 1,359,072 $ 1,342,804 Interest-bearing: Demand deposits 1,335,220 1,351,239 1,333,169 1,330,268 1,291,011 Savings deposits 1,215,358 1,208,828 1,233,834 1,266,211 1,259,457 Time deposits 1,249,123 1,203,046 1,145,617 1,100,250 1,040,990 Total deposits 5,144,150 5,102,651 5,067,280 5,055,801 4,934,262 Short-term borrowings FHLB short-term advances - - - - 25,000 Customer repurchase agreements 325,655 339,153 322,668 304,941 309,856 FHLB long-term advances 150,000 150,000 150,000 150,000 100,000 Other liabilities 108,990 101,211 114,707 121,210 121,868 Total Liabilities 5,728,795 5,693,015 5,654,655 5,631,952 5,490,986 Stockholders' Equity Preferred stock - - - - - Common stock 47,619 47,619 47,619 47,619 47,619 Capital surplus 176,506 175,602 174,834 175,747 177,424 Retained earnings 852,757 835,778 817,549 799,024 780,299 Cost of common stock in treasury (230,499 ) (230,836 ) (230,944 ) (218,555 ) (217,737 ) Accumulated other comprehensive loss: Unrealized loss on securities available-for-sale (114,277 ) (84,283 ) (119,737 ) (119,023 ) (107,958 ) Underfunded pension liability (1,442 ) (2,581 ) (2,581 ) (2,581 ) (2,581 ) Total Accumulated Other Comprehensive Loss (115,719 ) (86,864 ) (122,318 ) (121,604 ) (110,539 ) Total Stockholders' Equity 730,664 741,299 686,740 682,231 677,066 Total Liabilities and Stockholders' Equity $ 6,459,459 $ 6,434,314 $ 6,341,395 $ 6,314,183 $ 6,168,052 Regulatory Capital Total CET 1 capital $ 688,707 $ 669,862 $ 650,108 $ 644,235 $ 627,579 Total tier 1 capital 688,707 669,862 650,108 644,235 627,579 Total risk-based capital 709,820 690,857 671,959 665,707 648,646 Total risk-weighted assets 4,171,271 4,024,686 4,037,614 3,989,171 3,996,688 CITY HOLDING COMPANY AND SUBSIDIARIES Loan Portfolio (Unaudited) ($ in 000s) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Commercial and industrial $ 419,838 $ 424,414 $ 408,312 $ 407,770 $ 426,950 1-4 Family 197,258 194,670 195,992 202,378 206,237 Hotels 389,660 383,232 370,954 354,929 357,142 Multi-family 240,943 193,875 190,390 186,555 189,165 Non Residential Non-Owner Occupied 707,265 665,210 668,330 682,609 680,590 Non Residential Owner Occupied 233,497 236,826 235,993 232,440 240,328 Commercial real estate (1) 1,768,623 1,673,813 1,661,659 1,658,911 1,673,462 Residential real estate (2) 1,823,610 1,806,578 1,797,260 1,786,764 1,788,150 Home equity 199,192 190,149 179,607 171,292 167,201 Consumer 57,816 58,710 62,352 63,556 65,246 DDA overdrafts 5,697 4,166 3,683 3,495 4,914 Gross Loans $ 4,274,776 $ 4,157,830 $ 4,112,873 $ 4,091,788 $ 4,125,923 Construction loans included in: (1) - Commercial real estate loans $ 24,681 $ 2,736 $ 2,233 $ 6,651 $ 2,459 (2) - Residential real estate loans 7,547 7,604 9,766 19,709 23,066 CITY HOLDING COMPANY AND SUBSIDIARIES Asset Quality Information (Unaudited) ($ in 000s) Three Months Ended Twelve Months Ended December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 December 31,2024 December 31,2023 Allowance for Credit Losses Balance at beginning of period $ 21,832 $ 22,688 $ 22,310 $ 22,745 $ 23,128 $ 22,745 $ 17,108 Charge-offs: Commercial and industrial (99 ) (206 ) (61 ) (306 ) (84 ) (672 ) (153 ) Commercial real estate - (1,909 ) (40 ) (31 ) (5 ) (1,980 ) (381 ) Residential real estate (75 ) (43 ) (286 ) (19 ) (68 ) (423 ) (208 ) Home equity (23 ) (57 ) (121 ) (27 ) (21 ) (228 ) (400 ) Consumer (23 ) (24 ) (20 ) (115 ) (6 ) (182 ) (187 ) DDA overdrafts (405 ) (436 ) (373 ) (356 ) (416 ) (1,570 ) (1,645 ) Total charge-offs (625 ) (2,675 ) (901 ) (854 ) (600 ) (5,055 ) (2,974 ) Recoveries: Commercial and industrial 1 24 38 25 70 88 836 Commercial real estate 12 193 165 11 17 381 277 Residential real estate 3 27 179 49 4 258 47 Home equity 17 13 38 9 13 77 47 Consumer 15 25 24 98 45 162 123 DDA overdrafts 367 337 335 407 368 1,446 1,402 Total recoveries 415 619 779 599 517 2,412 2,732 Net charge-offs (210 ) (2,056 ) (122 ) (255 ) (83 ) (2,643 ) (242 ) Provision for (Recovery of) credit losses 300 1,200 500 (180 ) (300 ) 1,820 3,243 PCD Loan Reserves - - - - - - 2,811 Adoption of ASU 2022-02 - - - - - - (175 ) Balance at end of period $ 21,922 $ 21,832 $ 22,688 $ 22,310 $ 22,745 $ 21,922 $ 22,745 Loans outstanding $ 4,274,776 $ 4,157,830 $ 4,112,873 $ 4,091,788 $ 4,125,923 Allowance as a percent of loans outstanding 0.51 % 0.53 % 0.55 % 0.55 % 0.55 % Allowance as a percent of non-performing loans 154.3 % 141.1 % 236.8 % 206.8 % 290.6 % Average loans outstanding $ 4,215,962 $ 4,133,520 $ 4,092,464 $ 4,092,529 $ 4,045,889 $ 4,133,843 $ 3,900,913 Net charge-offs (annualized) as a percent of average loans outstanding 0.02 % 0.20 % 0.01 % 0.02 % 0.01 % 0.06 % 0.01 % CITY HOLDING COMPANY AND SUBSIDIARIES Asset Quality Information, continued (Unaudited) ($ in 000s) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Nonaccrual Loans Residential real estate $ 2,823 $ 2,596 $ 3,214 $ 3,452 $ 2,849 Home equity 212 109 63 121 111 Commercial and industrial 3,161 3,631 3,135 3,405 2,211 Commercial real estate 7,833 9,031 3,118 3,807 2,387 Consumer - - - 1 - Total nonaccrual loans 14,029 15,367 9,530 10,786 7,558 Accruing loans past due 90 days or more 182 102 50 - 270 Total non-performing loans 14,211 15,469 9,580 10,786 7,828 Other real estate owned 754 729 629 752 731 Total non-performing assets $ 14,965 $ 16,198 $ 10,209 $ 11,538 $ 8,559 Non-performing assets as a percent of loans and other real estate owned 0.35 % 0.39 % 0.25 % 0.28 % 0.21 % Past Due Loans Residential real estate $ 7,012 $ 8,205 $ 7,991 $ 5,035 $ 8,059 Home equity 902 1,571 819 1,028 1,235 Commercial and industrial - 57 1,087 26 435 Commercial real estate 240 992 565 138 715 Consumer 273 161 97 75 129 DDA overdrafts 391 333 327 406 364 Total past due loans $ 8,818 $ 11,319 $ 10,886 $ 6,708 $ 10,937 Total past due loans as a percent of loans outstanding 0.21 % 0.27 % 0.26 % 0.16 % 0.27 % CITY HOLDING COMPANY AND SUBSIDIARIES Consolidated Average Balance Sheets, Yields, and Rates (Unaudited) ($ in 000s) Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets: Loan portfolio (1): Residential real estate (2) $ 2,010,476 $ 25,835 5.11 % $ 1,984,502 $ 25,654 5.14 % $ 1,945,185 $ 23,673 4.83 % Commercial, financial, and agriculture (2) 2,141,481 34,859 6.48 % 2,082,888 34,708 6.63 % 2,031,089 33,038 6.45 % Installment loans to individuals (2), (3) 64,005 1,007 6.26 % 66,130 1,045 6.29 % 69,615 1,046 5.96 % Total loans 4,215,962 61,701 5.82 % 4,133,520 61,407 5.91 % 4,045,889 57,757 5.66 % Securities: Taxable 1,334,368 13,742 4.10 % 1,343,323 14,402 4.27 % 1,194,448 12,336 4.10 % Tax-exempt (4) 154,097 999 2.58 % 159,225 1,043 2.61 % 153,204 1,053 2.73 % Total securities 1,488,465 14,741 3.94 % 1,502,548 15,445 4.09 % 1,347,652 13,389 3.94 % Deposits in depository institutions 217,056 2,588 4.74 % 103,322 1,417 5.46 % 71,624 941 5.21 % Total interest-earning assets 5,921,483 79,030 5.31 % 5,739,390 78,269 5.43 % 5,465,165 72,087 5.23 % Cash and due from banks 105,485 110,765 87,633 Premises and equipment, net 70,759 70,998 72,435 Goodwill and intangible assets 160,413 161,009 163,220 Other assets 282,298 292,758 342,669 Less: Allowance for credit losses (22,178 ) (23,205 ) (23,532 ) Total assets $ 6,518,260 $ 6,351,715 $ 6,107,590 Liabilities: Interest-bearing demand deposits $ 1,367,370 $ 3,951 1.15 % $ 1,321,922 $ 4,100 1.23 % $ 1,299,683 $ 3,467 1.06 % Savings deposits 1,204,625 2,212 0.73 % 1,220,009 2,200 0.72 % 1,274,726 2,369 0.74 % Time deposits (2) 1,225,654 11,300 3.67 % 1,174,217 10,772 3.65 % 1,025,870 6,644 2.57 % Short-term borrowings 375,304 4,191 4.44 % 323,844 3,788 4.65 % 312,941 3,693 4.68 % FHLB long-term advances 150,000 1,586 4.21 % 150,000 1,586 4.21 % 100,000 1,026 4.07 % Total interest-bearing liabilities 4,322,953 23,240 2.14 % 4,189,992 22,446 2.13 % 4,013,220 17,199 1.70 % Noninterest-bearing demand deposits 1,347,457 1,334,762 1,334,021 Other liabilities 100,707 99,797 132,862 Stockholders' equity 747,143 727,164 627,487 Total liabilities and stockholders' equity $ 6,518,260 $ 6,351,715 $ 6,107,590 Net interest income $ 55,790 $ 55,823 $ 54,888 Net yield on earning assets 3.75 % 3.87 % 3.98 % (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 $ 175 $ 127 $ 201 (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 $ 57 $ 27 $ 78 Commercial, financial, and agriculture 802 752 702 Installment loans to individuals 4 5 26 Time deposits 12 14 131 $ 875 $ 798 $ 937 (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 Consolidated Average Balance Sheets, Yields, and Rates (Unaudited) ($ in 000s) Twelve Months Ended December 31, 2024 December 31, 2023 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Assets: Loan portfolio (1): Residential real estate (2) $ 1,978,804 $ 100,401 5.07 % $ 1,899,239 $ 88,083 4.64 % Commercial, financial, and agriculture (2) 2,088,474 137,071 6.56 % 1,935,038 120,783 6.24 % Installment loans to individuals (2), (3) 66,565 4,048 6.08 % 66,636 3,828 5.74 % Total loans 4,133,843 241,520 5.84 % 3,900,913 212,694 5.45 % Securities: Taxable 1,295,289 54,132 4.18 % 1,273,674 48,335 3.79 % Tax-exempt (4) 158,257 4,153 2.62 % 175,383 4,878 2.78 % Total securities 1,453,546 58,285 4.01 % 1,449,057 53,213 3.67 % Deposits in depository institutions 144,134 7,495 5.20 % 142,299 6,382 4.48 % Total interest-earning assets 5,731,523 307,300 5.36 % 5,492,269 272,289 4.96 % Cash and due from banks 104,575 74,443 Premises and equipment, net 71,298 72,582 Goodwill and intangible assets 161,318 153,937 Other assets 299,378 329,198 Less: Allowance for credit losses (22,804 ) (22,089 ) Total assets $ 6,345,288 $ 6,100,340 Liabilities: Interest-bearing demand deposits $ 1,323,507 $ 15,335 1.16 % $ 1,291,234 $ 11,048 0.86 % Savings deposits 1,231,698 8,917 0.72 % 1,332,527 7,979 0.60 % Time deposits (2) 1,149,773 40,277 3.50 % 969,329 18,260 1.88 % Short-term borrowings 337,368 15,500 4.59 % 290,440 12,027 4.14 % FHLB long-term advances 146,721 6,163 4.20 % 66,849 2,709 4.05 % Total interest-bearing liabilities 4,189,067 86,192 2.06 % 3,950,379 52,023 1.32 % Noninterest-bearing demand deposits 1,336,625 1,389,295 Other liabilities 107,061 125,377 Stockholders' equity 712,535 635,289 Total liabilities and stockholders' equity $ 6,345,288 $ 6,100,340 Net interest income $ 221,108 $ 220,266 Net yield on earning assets 3.86 % 4.01 % (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 $ 494 $ 1,366 (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 $ 202 $ 243 Commercial, financial, and agriculture 3,301 2,276 Installment loans to individuals 21 41 Time deposits 110 535 $ 3,634 $ 3,095 (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 Twelve Months Ended December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 December 31,2024 December 31,2023 Net Interest Income/Margin Net interest income ("GAAP") $ 55,580 $ 55,605 $ 54,625 $ 54,427 $ 54,666 $ 220,237 $ 219,241 Taxable equivalent adjustment 210 218 222 220 223 871 1,025 Net interest income, fully taxable equivalent $ 55,790 $ 55,823 $ 54,847 $ 54,647 $ 54,889 $ 221,108 $ 220,266 Tangible Equity Ratio (period end) Equity to assets ("GAAP") 11.31 % 11.52 % 10.83 % 10.81 % 10.98 % Effect of goodwill and other intangibles, net (2.25 )% (2.26 )% (2.33 )% (2.35 )% (2.41 )% Tangible common equity to tangible assets 9.06 % 9.26 % 8.50 % 8.46 % 8.57 % Commercial Loan Information (period end) Commercial Sector Total % of TotalLoans AverageDSC AverageLTV Natural Gas Extraction $ 26,966 0.63 % 3.71 NA Natural Gas Distribution 23,495 0.55 % 5.46 NA Masonry Contractors 25,197 0.59 % 1.04 84% Sheet Metal Work Manufacturing 26,422 0.62 % 1.22 68% Beer & Ale Merchant Wholesalers 26,565 0.62 % 3.28 NA Gasoline Stations with Convenience Stores 39,009 0.91 % 4.76 65% Lessors of Residential Buildings & Dwellings 494,952 11.60 % 1.89 66% 1-4 Family 185,720 4.35 % 2.97 67% Multi-Family 224,401 5.26 % 1.84 64% Lessors of Nonresidential Buildings 593,179 13.90 % 1.70 65% Office Buildings 133,513 3.13 % 1.64 62% Lessors of Mini-Warehouses & Self-Storage Units 55,980 1.31 % 1.43 61% Assisted Living Facilities 26,169 0.61 % 1.38 61% Hotels & Motels 390,075 9.14 % 1.45 63% Average Balance Median Balance Commercial, Financial, and Agriculture Loans $ 476 $ 97 Commercial Real Estate Loans 549 127 CITY HOLDING COMPANY AND SUBSIDIARIES Non-GAAP Reconciliations, continued (Unaudited) ($ in 000s, except per share data) Estimated Uninsured Deposits by Deposit Type December 31,2024 September 30,2024 Noninterest-Bearing Demand Deposits 17% 18% Interest-Bearing Deposits Demand Deposits 15% 16% Savings Deposits 12% 12% Time Deposits 16% 16% Total Deposits 15% 15% 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 Year New DDA Accounts Net Number ofNew Accounts Percentage 2024 32,238 4,497 1.8% 2023* 31,745 4,768 1.9% 2022 28,442 4,544 1.9% 2021 32,800 8,860 3.8% 2020 30,360 6,740 3.0% 2019 32,040 3,717 1.7% 2018* 30,400 4,310 2.2% 2017 28,525 2,711 1.4% 2016 28,650 2,820 1.5% * - 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).

City Holding Company Announces Record Annual Earnings

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