City Holding Company Announces Quarterly Results

CHARLESTON, W. Va.--(BUSINESS WIRE)--City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.3 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $29.1 million and diluted earnings of $1.96 per share for the quarter ended June 30, 2024. For the second quarter of 2024, the Company achieved a return on assets of 1.85% and a return on tangible equity of 22.2%.

Net Interest Income

The Company’s net interest income increased approximately $0.2 million, or 0.4%, from $54.4 million during the first quarter of 2024 to $54.6 million during the second quarter of 2024. The Company’s tax equivalent net interest income increased $0.2 million, or 0.4%, from $54.6 million for the first quarter of 2024 to $54.8 million for the second quarter of 2024. Due to an increase in average investment balances ($99.9 million) and an increase in the yield on investments (26 basis points), net interest income increased $1.0 million and $0.9 million respectively. Additionally, an increase in the average balance of deposits in depository institutions ($23.9 million) increased net interest income by $0.3 million and an increase in the yield on loans (2 basis points) increased net interest income by $0.2 million. These increases were largely offset by an increase in the cost of interest bearing liabilities (16 basis points) and an increase in the average balance of interest bearing liabilities ($118.6 million) which lowered net interest income by $1.5 million and $0.8 million respectively. The Company’s reported net interest margin decreased from 3.95% for the first quarter of 2024 to 3.87% for the second quarter of 2024.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased from 0.28%, or $11.5 million, at March 31, 2024 to 0.25%, or $10.2 million, at June 30, 2024. Total past due loans increased from $6.7 million, or 0.16% of total loans outstanding, at March 31, 2024, to $10.9 million, or 0.26% of total loans outstanding at June 30, 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 $0.5 million in the second quarter of 2024, compared to a provision for credit losses of $0.4 million for the comparable period in 2023, and a recovery of credit losses of $0.2 million for the first quarter of 2024. The provision for credit losses in the second quarter was primarily due to an increase in the loss rate for residential real estate loans.

Non-interest Income

Non-interest income was $18.9 million during the quarter ended June 30, 2024, as compared to $20.3 million during the quarter ended June 30, 2023. During the second quarter of 2024, the Company reported $0.4 million of unrealized fair value gains on the Company’s equity securities as compared to $0.3 million of unrealized fair value losses on the Company’s equity securities during the second quarter of 2023.

Exclusive of these items, non-interest income decreased $2.0 million, or 9.9%, from $20.6 million for the second quarter of 2023 to $18.6 million for the second quarter of 2024. This decrease was largely attributable to a decrease of $2.4 million in bank owned life insurance due to lower death benefit proceeds. This decrease was partially offset by an increase of $0.4 million, or 18.1%, in trust and investment management fee income.

Non-interest Expenses

Non-interest expenses increased $2.0 million, or 5.8%, from $34.8 million in the second quarter of 2023 to $36.8 million in the second quarter of 2024. This increase was largely due to an increase in other expenses of $0.9 million and bankcard expenses of $0.6 million. In addition, salaries and employee benefits increased $0.3 million, and equipment and software related expenses increased $0.2 million.

Balance Sheet Trends

Loans increased $21.1 million (0.5%) from March 31, 2024 to $4.11 billion at June 30, 2024. Residential real estate loans increased $10.5 million (0.6%), home equity loans increased $8.3 million (4.9%), and commercial real estate loans increased $2.7 million (0.2%).

Period-end deposit balances increased $11.5 million from March 31, 2024, to June 30, 2024. Total average depository balances increased $101.7 million, or 2.1%, from the quarter ended March 31, 2024 to the quarter ended June 30, 2024. Average time deposits increased $52.0 million, average interest-bearing demand deposits increased $36.5 million, and average noninterest bearing deposits increased $19.1 million. These increases were partially offset by a decrease of $5.9 million in average savings deposits.

Income Tax Expense

The Company’s effective income tax rate for the second quarter of 2024 was 19.7% compared to 20.1% for the year ended December 31, 2023, and 19.4%, for the quarter ended June 30, 2023.

Capitalization and Liquidity

The Company’s gross loan to deposit ratio was 81.2% and its gross loan to asset ratio was 64.9% at June 30, 2024. The Company maintained investment securities totaling 23.5% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 61.8% of assets at June 30, 2024. Time deposits fund 18.1% of assets at June 30, 2024, with only 13.9% 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 June 30, 2024, City National had the capacity to borrow an additional $1.6 billion from these existing borrowing facilities. In addition, approximately $710 million of City National’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $780 million of City National’s investment securities unpledged at June 30, 2024.

The Company continues to be strongly capitalized with tangible equity of $526 million at June 30, 2024. The Company’s tangible equity ratio decreased slightly from 8.6% at December 31, 2023 to 8.5% at June 30, 2024. At June 30, 2024, City National’s Leverage Ratio was 9.7%, its Common Equity Tier I ratio was 15.2%, its Tier I Capital ratio was 15.2%, and its Total Risk-Based Capital ratio was 15.7%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On May 29, 2024, the Board of Directors of the Company approved a quarterly cash dividend of $0.715 per share payable July 31, 2024, to shareholders of record as of July 15, 2024. During the quarter ended June 30, 2024, the Company repurchased 142,000 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 June 30, 2024, the Company could repurchase 821,000 additional shares under the current program.

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 June 30, 2024 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary June 30, 2024 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
	Three Months Ended															Six Months Ended
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			June 30, 2024			June 30, 2023
Earnings
Net Interest Income (fully taxable equivalent)	$	54,847		$	54,647		$	54,889		$	55,855		$	55,757		$	109,495		$	109,524
Net Income available to common shareholders		29,115			29,523			27,452			29,839			32,733			58,638			57,074
Per Share Data
Earnings per share available to common shareholders:
Basic	$	1.96		$	1.98		$	1.84		$	1.98		$	2.16		$	3.95		$	3.80
Diluted		1.96			1.97			1.84			1.98			2.16			3.94			3.79
Weighted average number of shares (in thousands):
Basic		14,695			14,795			14,758			14,922			14,994			14,721			14,897
Diluted		14,710			14,819			14,785			14,945			15,012			14,740			14,919
Period-end number of shares (in thousands)		14,701			14,825			14,832			14,901			15,007			14,701			15,007
Cash dividends declared	$	0.72		$	0.72		$	0.72		$	0.72		$	0.65		$	1.43		$	1.30
Book value per share (period-end)	$	46.71		$	46.02		$	45.65		$	40.94		$	42.39		$	46.71		$	42.39
Tangible book value per share (period-end)		35.75			35.10			34.69			29.98			31.50			35.75			31.50
Market data:
High closing price	$	106.43		$	111.40		$	115.77		$	99.49		$	97.92		$	111.40		$	100.27
Low closing price		98.35			99.28			87.43			87.51			83.57			98.35			83.57
Period-end closing price		106.25			104.22			110.26			90.35			89.99			106.25			89.99
Average daily volume (in thousands)		57			63			62			62			80			60			82
Treasury share activity:
Treasury shares repurchased (in thousands)		142			36			70			109			269			179			488
Average treasury share repurchase price	$	100.24		$	100.24		$	90.61		$	89.33		$	88.93		$	100.24		$	90.35
Key Ratios (percent)
Return on average assets		1.85	%		1.92	%		1.78	%		1.94	%		2.12	%		1.89	%		1.89	%
Return on average tangible equity		22.2	%		22.7	%		23.5	%		24.1	%		27.4	%		22.4	%		23.7	%
Yield on interest earning assets		5.38	%		5.33	%		5.23	%		5.08	%		4.87	%		5.36	%		4.76	%
Cost of interest bearing liabilities		2.06	%		1.90	%		1.70	%		1.46	%		1.22	%		1.98	%		1.05	%
Net Interest Margin		3.87	%		3.95	%		3.98	%		4.03	%		4.00	%		3.91	%		4.02	%
Non-interest income as a percent of total revenue		25.3	%		25.0	%		25.6	%		24.6	%		27.1	%		25.3	%		26.0	%
Efficiency Ratio		49.3	%		48.5	%		47.4	%		46.4	%		44.6	%		48.9	%		45.2	%
Price/Earnings Ratio (a)		13.53			13.17			14.95			11.40			10.40			13.46			11.85
Capital (period-end)
Average Shareholders' Equity to Average Assets		10.90	%		11.09	%		10.27	%		10.73	%		10.38	%
Tangible equity to tangible assets		8.50	%		8.46	%		8.57	%		7.55	%		7.90	%
Consolidated City Holding Company risk based capital ratios (b):
CET I		16.10	%		16.15	%		15.70	%		15.36	%		15.47	%
Tier I		16.10	%		16.15	%		15.70	%		15.36	%		15.47	%
Total		16.64	%		16.69	%		16.23	%		15.89	%		16.01	%
Leverage		10.30	%		10.45	%		10.23	%		10.05	%		9.80	%
City National Bank risk based capital ratios (b):
CET I		15.17	%		14.60	%		13.79	%		14.73	%		14.82	%
Tier I		15.17	%		14.60	%		13.79	%		14.73	%		14.82	%
Total		15.72	%		15.14	%		14.32	%		15.27	%		15.36	%
Leverage		9.68	%		9.42	%		8.94	%		9.61	%		9.36	%
Other (period-end)
Branches		97			97			98			99			99
FTE		948			953			957			966			963
Assets per FTE (in thousands)	$	6,689		$	6,625		$	6,447		$	6,291		$	6,383
Deposits per FTE (in thousands)		5,345			5,304			5,157			5,120			5,208
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) June 30, 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														Six Months Ended
	June 30, 2024		March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			June 30, 2024			June 30, 2023
Interest Income
Interest and fees on loans	$	59,285	$	59,128		$	57,755		$	55,582		$	52,352		$	118,413		$	99,356
Interest on investment securities:
Taxable		13,947		12,040			12,336			12,432			11,794			25,987			23,567
Tax-exempt		838		830			832			910			950			1,668			2,112
Interest on deposits in depository institutions		1,920		1,570			941			1,265			2,585			3,490			4,176
Total Interest Income		75,990		73,568			71,864			70,189			67,681			149,558			129,211
Interest Expense
Interest on deposits		15,897		14,097			12,479			10,551			8,567			29,994			14,257
Interest on short-term borrowings		3,900		3,621			3,693			2,990			2,963			7,521			5,344
Interest on FHLB long-term advances		1,568		1,423			1,026			1,034			649			2,991			649
Total Interest Expense		21,365		19,141			17,198			14,575			12,179			40,506			20,250
Net Interest Income		54,625		54,427			54,666			55,614			55,502			109,052			108,961
Provision for (Recovery of) credit losses		500		(180	)		(300	)		200			425			320			3,343
Net Interest Income After Provision for (Recovery of) Credit Losses		54,125		54,607			54,966			55,414			55,077			108,732			105,618
Non-Interest Income
Net (losses) gains on sale of investment securities		-		(1	)		(4,951	)		(730	)		-			(1	)		773
Unrealized gains (losses) recognized on equity securities still held		364		(152	)		365			-			(294	)		212			67
Service charges		6,980		7,035			7,158			7,124			6,906			14,015			13,469
Bankcard revenue		7,245		6,800			7,109			7,058			7,190			14,045			13,793
Trust and investment management fee income		2,762		2,623			2,563			2,409			2,339			5,385			4,591
Bank owned life insurance		775		927			1,218			807			3,208			1,702			4,012
Other income		785		716			774			742			952			1,501			2,278
Total Non-Interest Income		18,911		17,948			14,236			17,410			20,301			36,859			38,983
Non-Interest Expense
Salaries and employee benefits		18,751		18,878			18,772			18,289			18,429			37,629			36,102
Occupancy related expense		2,856		2,840			2,917			2,950			2,811			5,696			5,451
Equipment and software related expense		3,130		2,929			2,824			2,830			2,883			6,059			5,975
FDIC insurance expense		718		711			868			919			690			1,429			1,135
Advertising		972		867			588			790			974			1,839			1,734
Bankcard expenses		2,290		2,039			2,014			2,188			1,736			4,329			3,245
Postage, delivery, and statement mailings		714		666			615			668			596			1,380			1,243
Office supplies		432		453			477			457			591			885			1,011
Legal and professional fees		551		482			478			529			558			1,033			1,028
Telecommunications		624		600			614			568			623			1,224			1,229
Repossessed asset losses (gains), net of expenses		6		229			(50	)		40			22			235			38
Other expenses		5,728		5,206			4,992			4,800			4,848			10,934			15,193
Total Non-Interest Expense		36,772		35,900			35,109			35,028			34,761			72,672			73,384
Income Before Income Taxes		36,264		36,655			34,093			37,796			40,617			72,919			71,217
Income tax expense		7,149		7,132			6,641			7,957			7,884			14,281			14,143
Net Income Available to Common Shareholders	$	29,115	$	29,523		$	27,452		$	29,839		$	32,733		$	58,638		$	57,074
Distributed earnings allocated to common shareholders	$	10,418	$	10,505		$	10,508		$	10,554		$	9,668		$	20,835		$	19,336
Undistributed earnings allocated to common shareholders		18,439		18,757			16,696			19,004			22,774			37,284			37,233
Net earnings allocated to common shareholders	$	28,857	$	29,262		$	27,204		$	29,558		$	32,442		$	58,119		$	56,569
Average common shares outstanding		14,695		14,795			14,758			14,922			14,994			14,721			14,897
Shares for diluted earnings per share		14,710		14,819			14,785			14,945			15,012			14,740			14,919
Basic earnings per common share	$	1.96	$	1.98		$	1.84		$	1.98		$	2.16		$	3.95		$	3.80
Diluted earnings per common share	$	1.96	$	1.97		$	1.84		$	1.98		$	2.16		$	3.94		$	3.79

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
Assets
Cash and due from banks	$	141,168		$	121,853		$	123,033		$	67,402		$	69,622
Interest-bearing deposits in depository institutions		76,818			196,829			33,243			43,314			161,659
Cash and cash equivalents		217,986			318,682			156,276			110,716			231,281
Investment securities available-for-sale, at fair value		1,456,685			1,347,657			1,338,137			1,358,219			1,419,933
Other securities		31,237			30,681			30,966			29,022			29,262
Total investment securities		1,487,922			1,378,338			1,369,103			1,387,241			1,449,195
Gross loans		4,112,873			4,091,788			4,125,923			4,007,482			3,922,142
Allowance for credit losses		(22,688	)		(22,310	)		(22,745	)		(23,128	)		(22,751	)
Net loans		4,090,185			4,069,478			4,103,178			3,984,354			3,899,391
Bank owned life insurance		119,650			118,875			118,122			117,979			117,173
Premises and equipment, net		71,041			71,623			72,146			72,682			73,118
Accrued interest receivable		21,826			21,759			20,290			19,223			17,973
Net deferred tax assets		43,602			43,969			42,216			58,811			46,944
Goodwill and intangible assets		161,236			161,832			162,568			163,461			163,426
Other assets		127,947			129,627			124,153			161,659			148,333
Total Assets	$	6,341,395		$	6,314,183		$	6,168,052		$	6,076,126		$	6,146,834
Liabilities
Deposits:
Noninterest-bearing	$	1,354,660		$	1,359,072		$	1,342,804		$	1,333,474		$	1,373,106
Interest-bearing:
Demand deposits		1,333,169			1,330,268			1,291,011			1,319,783			1,337,445
Savings deposits		1,233,834			1,266,211			1,259,457			1,282,642			1,343,571
Time deposits		1,145,617			1,100,250			1,040,990			1,009,235			960,941
Total deposits		5,067,280			5,055,801			4,934,262			4,945,134			5,015,063
Short-term borrowings
FHLB short-term advances		-			-			25,000			-			-
Customer repurchase agreements		322,668			304,941			309,856			278,671			271,714
FHLB long-term advances		150,000			150,000			100,000			100,000			100,000
Other liabilities		114,707			121,210			121,868			142,187			123,865
Total Liabilities		5,654,655			5,631,952			5,490,986			5,465,992			5,510,642
Stockholders' Equity
Preferred stock		-			-			-			-			-
Common stock		47,619			47,619			47,619			47,619			47,619
Capital surplus		174,834			175,747			177,424			177,113			176,746
Retained earnings		817,549			799,024			780,299			763,425			744,248
Cost of common stock in treasury		(230,944	)		(218,555	)		(217,737	)		(211,430	)		(201,973	)
Accumulated other comprehensive loss:
Unrealized loss on securities available-for-sale		(119,737	)		(119,023	)		(107,958	)		(163,171	)		(127,026	)
Underfunded pension liability		(2,581	)		(2,581	)		(2,581	)		(3,422	)		(3,422	)
Total Accumulated Other Comprehensive Loss		(122,318	)		(121,604	)		(110,539	)		(166,593	)		(130,448	)
Total Stockholders' Equity		686,740			682,231			677,066			610,134			636,192
Total Liabilities and Stockholders' Equity	$	6,341,395		$	6,314,183		$	6,168,052		$	6,076,126		$	6,146,834
Regulatory Capital
Total CET 1 capital	$	650,108		$	644,235		$	627,579		$	615,798		$	605,661
Total tier 1 capital		650,108			644,235			627,579			615,798			605,661
Total risk-based capital		671,959			665,707			648,646			637,245			626,730
Total risk-weighted assets		4,037,614			3,989,171			3,996,688			4,009,798			3,913,870

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Commercial and industrial	$	408,312	$	407,770	$	426,950	$	424,647	$	417,847
1-4 Family		195,992		202,378		206,237		197,081		184,919
Hotels		370,954		354,929		357,142		321,236		324,745
Multi-family		190,390		186,555		189,165		192,329		191,483
Non Residential Non-Owner Occupied		668,330		682,609		680,590		651,498		612,703
Non Residential Owner Occupied		235,993		232,440		240,328		222,544		222,852
Commercial real estate ^(1)		1,661,659		1,658,911		1,673,462		1,584,688		1,536,702
Residential real estate ^(2)		1,797,260		1,786,764		1,788,150		1,768,358		1,746,618
Home equity		179,607		171,292		167,201		159,630		151,012
Consumer		62,352		63,556		65,246		65,586		65,201
DDA overdrafts		3,683		3,495		4,914		4,573		4,762
Gross Loans	$	4,112,873	$	4,091,788	$	4,125,923	$	4,007,482	$	3,922,142
Construction loans included in:
^(1) - Commercial real estate loans	$	2,233	$	6,651	$	2,459	$	2,533	$	3,361
^(2) - Residential real estate loans		9,766		19,709		23,066		20,056		20,470

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
	Three Months Ended															Six Months Ended
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			June 30, 2024			June 30, 2023
Allowance for Credit Losses
Balance at beginning of period	$	22,310		$	22,745		$	23,128		$	22,751		$	22,724		$	22,745		$	17,108
Charge-offs:
Commercial and industrial		(61	)		(306	)		(84	)		-			(69	)		(367	)		(69	)
Commercial real estate		(40	)		(31	)		(5	)		(256	)		(117	)		(71	)		(120	)
Residential real estate		(286	)		(19	)		(68	)		(88	)		(20	)		(305	)		(52	)
Home equity		(121	)		(27	)		(21	)		(112	)		(200	)		(148	)		(267	)
Consumer		(20	)		(115	)		(6	)		(10	)		(109	)		(135	)		(171	)
DDA overdrafts		(373	)		(356	)		(416	)		(422	)		(357	)		(729	)		(807	)
Total charge-offs		(901	)		(854	)		(600	)		(888	)		(872	)		(1,755	)		(1,486	)
Recoveries:
Commercial and industrial		38			25			70			597			86			63			169
Commercial real estate		165			11			17			74			28			176			186
Residential real estate		179			49			4			28			5			228			15
Home equity		38			9			13			18			12			47			16
Consumer		24			98			45			27			28			122			51
DDA overdrafts		335			407			368			321			315			742			713
Total recoveries		779			599			517			1,065			474			1,378			1,150
Net (charge-offs) recoveries		(122	)		(255	)		(83	)		177			(398	)		(377	)		(336	)
Provision for (recovery of) credit losses		500			(180	)		(300	)		200			425			320			3,343
PCD Loan Reserves		-			-			-			-			-			-			2,811
Adoption of ASU 2022-02		-			-			-			-			-			-			(175	)
Balance at end of period	$	22,688		$	22,310		$	22,745		$	23,128		$	22,751		$	22,688		$	22,751
Loans outstanding	$	4,112,873		$	4,091,788		$	4,125,923		$	4,007,482		$	3,922,142
Allowance as a percent of loans outstanding		0.55	%		0.55	%		0.55	%		0.58	%		0.58	%
Allowance as a percent of non-performing loans		236.8	%		206.8	%		290.6	%		440.1	%		405.5	%
Average loans outstanding	$	4,092,464		$	4,092,529		$	4,045,889		$	3,956,871		$	3,896,284		$	4,092,497		$	3,798,781
Net charge-offs (recoveries) (annualized) as a percent of average loans outstanding		0.01	%		0.02	%		0.01	%		(0.02	)%		0.04	%		0.02	%		0.02	%
CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
Nonaccrual Loans
Residential real estate	$	3,214		$	3,452		$	2,849		$	2,839		$	2,774
Home equity		63			121			111			75			24
Commercial and industrial		3,135			3,405			2,211			716			741
Commercial real estate		3,118			3,807			2,387			1,355			1,821
Consumer		-			1			-			1			36
Total nonaccrual loans		9,530			10,786			7,558			4,986			5,396
Accruing loans past due 90 days or more		50			-			270			269			215
Total non-performing loans		9,580			10,786			7,828			5,255			5,611
Other real estate owned		629			752			731			720			874
Total non-performing assets	$	10,209		$	11,538		$	8,559		$	5,975		$	6,485
Non-performing assets as a percent of loans and other real estate owned		0.25	%		0.28	%		0.21	%		0.15	%		0.17	%
Past Due Loans
Residential real estate	$	7,991		$	5,035		$	8,059		$	6,247		$	5,884
Home equity		819			1,028			1,235			1,278			784
Commercial and industrial		1,087			26			435			568			142
Commercial real estate		565			138			715			1,478			238
Consumer		97			75			129			84			57
DDA overdrafts		327			406			364			398			341
Total past due loans	$	10,886		$	6,708		$	10,937		$	10,053		$	7,446
Total past due loans as a percent of loans outstanding		0.26	%		0.16	%		0.27	%		0.25	%		0.19	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
	Three Months Ended
	June 30, 2024							March 31, 2024							June 30, 2023
	Average					Yield/		Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio ^(1):
Residential real estate ^(2)	$	1,969,769		$	24,763	5.06	%	$	1,953,647		$	24,148	4.97	%	$	1,894,269		$	21,702	4.60	%
Commercial, financial, and agriculture ^(2)		2,055,263			33,524	6.56	%		2,070,054			33,980	6.60	%		1,933,238			29,754	6.17	%
Installment loans to individuals ^(2), (3)		67,432			998	5.95	%		68,828			999	5.84	%		68,777			898	5.24	%
Total loans		4,092,464			59,285	5.83	%		4,092,529			59,127	5.81	%		3,896,284			52,354	5.39	%
Securities:
Taxable		1,302,197			13,947	4.31	%		1,200,310			12,040	4.03	%		1,301,063			11,794	3.64	%
Tax-exempt ^(4)		158,894			1,060	2.68	%		160,847			1,051	2.63	%		174,410			1,203	2.77	%
Total securities		1,461,091			15,007	4.13	%		1,361,157			13,091	3.87	%		1,475,473			12,997	3.53	%
Deposits in depository institutions		139,852			1,920	5.52	%		115,953			1,570	5.45	%		223,671			2,585	4.64	%
Total interest-earning assets		5,693,407			76,212	5.38	%		5,569,639			73,788	5.33	%		5,595,428			67,936	4.87	%
Cash and due from banks		103,004							98,966							72,342
Premises and equipment, net		71,491							71,954							73,450
Goodwill and intangible assets		161,607							162,257							163,847
Other assets		316,440							306,278							313,925
Less: Allowance for credit losses		(22,694	)						(23,142	)						(23,046	)
Total assets	$	6,323,255						$	6,185,952						$	6,195,946
Liabilities:
Interest-bearing demand deposits	$	1,320,402		$	3,845	1.17	%	$	1,283,868		$	3,439	1.08	%	$	1,328,520		$	2,773	0.84	%
Savings deposits		1,248,330			2,232	0.72	%		1,254,253			2,273	0.73	%		1,365,894			1,942	0.57	%
Time deposits ^(2)		1,125,036			9,820	3.51	%		1,073,083			8,385	3.14	%		962,299			3,852	1.61	%
Short-term borrowings		336,434			3,900	4.66	%		313,623			3,621	4.64	%		294,255			2,963	4.04	%
FHLB long-term advances		150,000			1,568	4.20	%		136,813			1,423	4.18	%		65,934			649	3.95	%
Total interest-bearing liabilities		4,180,202			21,365	2.06	%		4,061,640			19,141	1.90	%		4,016,902			12,179	1.22	%
Noninterest-bearing demand deposits		1,341,642							1,322,540							1,419,771
Other liabilities		112,301							115,589							116,083
Stockholders' equity		689,110							686,183							643,190
Total liabilities and stockholders' equity	$	6,323,255						$	6,185,952						$	6,195,946
Net interest income				$	54,847						$	54,647						$	55,757
Net yield on earning assets						3.87	%						3.95	%						4.00	%
(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				$	60						$	133						$	393
(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				$	72						$	45						$	78
Commercial, financial, and agriculture					683							1,065							709
Installment loans to individuals					6							6							8
Time deposits					21							63							154
				$	782						$	1,179						$	949
(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)
	Six Months Ended
	June 30, 2024							June 30, 2023
	Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio ^(1):
Residential real estate ^(2)	$	1,962,337		$	48,912	5.01	%	$	1,869,375		$	41,707	4.50	%
Commercial, financial, and agriculture ^(2)		2,062,016			67,504	6.58	%		1,866,177			56,001	6.05	%
Installment loans to individuals ^(2), (3)		68,144			1,997	5.89	%		63,229			1,648	5.26	%
Total loans		4,092,497			118,413	5.82	%		3,798,781			99,356	5.27	%
Securities:
Taxable		1,251,253			25,987	4.18	%		1,312,118			23,567	3.62	%
Tax-exempt ^(4)		159,871			2,111	2.66	%		188,984			2,674	2.85	%
Total securities		1,411,124			28,098	4.00	%		1,501,102			26,241	3.53	%
Deposits in depository institutions		127,902			3,490	5.49	%		192,027			4,176	4.39	%
Total interest-earning assets		5,631,523			150,001	5.36	%		5,491,910			129,773	4.77	%
Cash and due from banks		100,985							70,170
Premises and equipment, net		71,723							72,441
Goodwill and intangible assets		161,932							144,305
Other assets		311,358							320,646
Less: Allowance for credit losses		(22,918	)						(20,608	)
Total assets	$	6,254,603						$	6,078,864
Liabilities:
Interest-bearing demand deposits	$	1,302,135		$	7,284	1.12	%	$	1,282,009		$	4,513	0.71	%
Savings deposits		1,251,292			4,505	0.72	%		1,371,077			3,290	0.48	%
Time deposits ^(2)		1,099,059			18,205	3.33	%		932,606			6,453	1.40	%
Short-term borrowings		325,028			7,521	4.65	%		288,092			5,344	3.74	%
FHLB long-term advances		143,407			2,991	4.19	%		33,149			649	3.95	%
Total interest-bearing liabilities		4,120,921			40,506	1.98	%		3,906,933			20,249	1.05	%
Noninterest-bearing demand deposits		1,332,091							1,420,221
Other liabilities		113,945							122,709
Stockholders' equity		687,646							629,001
Total liabilities and stockholders' equity	$	6,254,603						$	6,078,864
Net interest income				$	109,495						$	109,524
Net yield on earning assets						3.91	%						4.02	%
(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				$	193						$	911
(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				$	118						$	117
Commercial, financial, and agriculture					1,747							855
Installment loans to individuals					12							11
Time deposits					84							164
				$	1,961						$	1,147
(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															Six Months Ended
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			June 30, 2024		June 30, 2023
Net Interest Income/Margin
Net interest income ("GAAP")	$	54,625		$	54,427		$	54,666		$	55,614		$	55,502		$	109,052	$	108,961
Taxable equivalent adjustment		222			220			223			243			255			443		563
Net interest income, fully taxable equivalent	$	54,847		$	54,647		$	54,889		$	55,857		$	55,757		$	109,495	$	109,524
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")		10.83	%		10.81	%		10.98	%		10.04	%		10.35	%
Effect of goodwill and other intangibles, net		(2.33	)%		(2.35	)%		(2.41	)%		(2.49	)%		(2.45	)%
Tangible common equity to tangible assets		8.50	%		8.46	%		8.57	%		7.55	%		7.90	%
Commercial Loan Information (period end)
Commercial Sector	Total			% of Total Loans			Average DSC			Average LTV
Natural Gas Extraction	$	26,230			1.16	%		3.71		NA
Natural Gas Distribution		12,800			0.57	%		5.46		NA
Masonry Contractors		49,538			2.19	%		1.04			84%
Sheet Metal Work Manufacturing		31,444			1.39	%		1.22			68%
Beer & Ale Merchant Wholesalers		26,894			1.19	%		3.28		NA
Gasoline Stations with Convenience Stores		42,330			1.88	%		4.76			65%
Lessors of Residential Builidings & Dwellings		445,176			19.72	%		1.89			66%
1-4 Family		235,032			10.41	%		2.97			67%
Multi-Family		173,574			7.69	%		1.84			64%
Lessors of Nonresidential Buildings		608,933			26.98	%		1.70			65%
Office Buildings		125,922			5.58	%		1.64			62%
Lessors of Mini-Warehouses & Self-Storage Units		50,941			2.26	%		1.43			61%
Assisted Living Facilities		27,184			1.20	%		1.38			61%
Hotels & Motels		401,096			17.77	%		1.45			63%
	Average Balance			Median Balance
Commercial, Financial, and Agriculture Loans	$	449		$	93
Commercial Real Estate Loans		514			121
CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued
(Unaudited) ($ in 000s, except per share data)
Estimated Uninsured Deposits by Deposit Type
	June 30, 2024			March 31, 2024
Noninterest-Bearing Demand Deposits		17	%		16	%
Interest-Bearing Deposits
Demand Deposits		13	%		12	%
Savings Deposits		12	%		12	%
Time Deposits		16	%		15	%
Total Deposits		14	%		14	%
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 of New Accounts			Percentage
2024 YTD		16,423			2,849			1.1	%
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).