City Holding Company Announces Quarterly Results

CHARLESTON, W. Va.--(BUSINESS WIRE)--City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.4 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $29.8 million and diluted earnings of $2.02 per share for the quarter ended September 30, 2024. In the third quarter of 2024, the Company achieved a return on assets of 1.87% and a return on tangible equity of 20.9%.

Net Interest Income

The Company’s net interest income increased approximately $1.0 million, or 1.8%, from $54.6 million during the second quarter of 2024 to $55.6 million during the third quarter of 2024. The Company’s tax equivalent net interest income increased $1.0 million, or 1.8%, from $54.8 million for the second quarter of 2024 to $55.8 million for the third quarter of 2024. Due to an increase in the yield on loans (7 basis points) and an increase in average loans outstanding ($41.1 million), net interest income increased $1.4 million and $0.6 million, respectively. In addition, net interest income increased $0.4 million due to an increase in the average investment balances ($41.5 million). These increases were partially offset by an increase in the cost of interest bearing liabilities (7 basis points) which decreased net interest income by $0.8 million, and lower average deposits in depository institutions balances ($36.5 million) that lowered net interest income by $0.5 million. The Company’s reported net interest margin remained steady at 3.87% for both the second and third quarters of 2024.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned increased from 0.25%, or $10.2 million, at June 30, 2024 to 0.39%, or $16.2 million, at September 30, 2024. Total past due loans increased slightly from $10.9 million, or 0.26% of total loans outstanding, at June 30, 2024, to $11.3 million, or 0.27% of total loans outstanding at September 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 $1.2 million in the third quarter of 2024, compared to a provision for credit losses of $0.2 million for the comparable period in 2023, and a provision for credit losses of $0.5 million for the second quarter of 2024. The provision for credit losses in the third quarter was primarily related to a commercial loan for a movie theater that had been originated in September 2014. The loan had paid according to terms but cash flows began deteriorating during the COVID-19 crisis which began in 2020. Due to further operating weaknesses during 2024, the loan was transferred to nonaccrual status and a $2.0 million charge-off was recorded in the quarter ending September 30, 2024, leaving an outstanding balance of approximately $6.7 million. The Company has only one other loan to a movie theater and the outstanding balance of that performing loan is under $5.0 million. This charge-off was partially offset by a $0.75 million reversal of a reserve on a purchase credit deteriorated loan that was paid-off in full during the quarter ended September 30, 2024.

Non-interest Income

Non-interest income was $20.3 million during the quarter ended September 30, 2024, as compared to $17.4 million during the quarter ended September 30, 2023. During the third quarter of 2024, the Company reported $0.4 million of unrealized fair value gains on the Company’s equity securities, as compared to $0.7 million of realized security losses during the third quarter of 2023.

Exclusive of these items, non-interest income increased $1.9 million, or 10.3%, from $18.1 million for the third quarter of 2023 to $20.0 million for the third quarter of 2024. This increase was attributable to an increase of $0.6 million (77.8%) in bank owned life insurance (due to death benefit proceeds), an increase of $0.5 million (21.3%) in trust and investment management fee income, an increase of $0.4 million (5.7%) in service fees, and an increase of $0.3 million (4.1%) in bankcard revenues.

Non-interest Expenses

Non-interest expenses increased $2.6 million, or 7.5%, from $35.0 million in the third quarter of 2023 to $37.6 million in the third quarter of 2024. This increase was largely due to an increase in other expenses of $1.1 million and an increase in salaries and employee benefits of $1.0 million. In addition, equipment and software related expenses increased $0.6 million and advertising expenses increased $0.3 million.

Balance Sheet Trends

Gross loans increased $45.0 million (1.1%) from June 30, 2024 to $4.16 billion at September 30, 2024. Commercial and industrial loans increased $16.1 million (3.9%), commercial real estate loans increased $12.2 million (0.7%), home equity loans increased $10.5 million (5.9%), and residential real estate loans increased $9.3 million (0.5%) during the quarter ended September 30, 2024.

Period-end deposit balances increased $35.4 million, 0.7% from June 30, 2024, to September 30, 2024. Total average depository balances increased $15.5 million, or 0.3%, from the quarter ended June 30, 2024 to the quarter ended September 30, 2024. Average time deposit balances increased $49.2 million and were partially offset by decreases in average savings deposit balances of $28.3 million and decreases in average noninterest-bearing demand deposit balances of $6.9 million.

Income Tax Expense

The Company’s effective income tax rate for the third quarter of 2024 was 19.7% compared to 20.1% for the year ended December 31, 2023 and 21.1% for the quarter ended September 30, 2023.

Capitalization and Liquidity

The Company’s gross loan to deposit ratio was 81.5% and its gross loan to asset ratio was 64.6% at September 30, 2024. The Company maintained investment securities totaling 23.2% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 60.6% of assets at September 30, 2024. Time deposits fund 18.7% of assets at September 30, 2024, with only 14.4% 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 September 30, 2024, City National had the capacity to borrow an additional $1.6 billion from these existing borrowing facilities. In addition, approximately $765 million of City National’s investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving approximately $730 million of City National’s investment securities unpledged at September 30, 2024.

The Company continues to be strongly capitalized with tangible equity of $581 million at September 30, 2024. The Company’s tangible equity ratio increased from 8.6% at December 31, 2023 to 9.3% at September 30, 2024. At September 30, 2024, City National’s Leverage Ratio was 10.2%, its Common Equity Tier I ratio was 16.0%, its Tier I Capital ratio was 16.0%, and its Total Risk-Based Capital ratio was 16.5%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On September 25, 2024, the Board of Directors of the Company approved a quarterly cash dividend of $0.79 per share payable October 31, 2024, to shareholders of record as of October 15, 2023. This represents a 10.0% increase from the $0.715 per share dividend paid on July 31, 2024.

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

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
	Three Months Ended															Nine Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Earnings
Net Interest Income (fully taxable equivalent)	$	55,823		$	54,847		$	54,647		$	54,889		$	55,855		$	165,318		$	165,379
Net Income available to common shareholders		29,809			29,115			29,523			27,452			29,839			88,447			86,913
Per Share Data
Earnings per share available to common shareholders:
Basic	$	2.02		$	1.96		$	1.98		$	1.84		$	1.98		$	5.96		$	5.78
Diluted		2.02			1.96			1.97			1.84			1.98			5.96			5.77
Weighted average number of shares (in thousands):
Basic		14,633			14,695			14,795			14,758			14,922			14,691			14,906
Diluted		14,654			14,710			14,819			14,785			14,945			14,711			14,928
Period-end number of shares (in thousands)		14,702			14,701			14,825			14,832			14,901			14,702			14,901
Cash dividends declared	$	0.79		$	0.72		$	0.72		$	0.72		$	0.72		$	2.22		$	2.02
Book value per share (period-end)	$	50.42		$	46.71		$	46.02		$	45.65		$	40.94		$	50.42		$	40.94
Tangible book value per share (period-end)		39.49			35.75			35.10			34.69			29.98			39.49			29.98
Market data:
High closing price	$	123.29		$	106.43		$	111.40		$	115.77		$	99.49		$	123.29		$	100.27
Low closing price		104.53			98.35			99.28			87.43			87.51			98.35			83.57
Period-end closing price		117.39			106.25			104.22			110.26			90.35			117.39			90.35
Average daily volume (in thousands)		56			57			63			62			62			59			76
Treasury share activity:
Treasury shares repurchased (in thousands)		-			142			36			70			109			179			597
Average treasury share repurchase price	$	-		$	100.24		$	100.24		$	90.61		$	89.33		$	100.24		$	90.16
Key Ratios (percent)
Return on average assets		1.87	%		1.85	%		1.92	%		1.78	%		1.94	%		1.88	%		1.91	%
Return on average tangible equity		20.9	%		22.2	%		22.7	%		23.5	%		24.1	%		21.9	%		23.9	%
Yield on interest earning assets		5.43	%		5.38	%		5.33	%		5.23	%		5.08	%		5.38	%		4.87	%
Cost of interest bearing liabilities		2.13	%		2.06	%		1.90	%		1.70	%		1.46	%		2.03	%		1.18	%
Net Interest Margin		3.87	%		3.87	%		3.95	%		3.98	%		4.03	%		3.90	%		4.02	%
Non-interest income as a percent of total revenue		26.5	%		25.3	%		25.0	%		25.6	%		24.6	%		25.8	%		25.5	%
Efficiency Ratio		48.8	%		49.3	%		48.5	%		47.4	%		46.4	%		48.9	%		45.6	%
Price/Earnings Ratio (a)		14.54			13.53			13.17			14.95			11.40			14.76			11.73
Capital (period-end)
Average Shareholders' Equity to Average Assets		11.45	%		10.90	%		11.09	%		10.27	%		10.73	%
Tangible equity to tangible assets		9.26	%		8.50	%		8.46	%		8.57	%		7.55	%
Consolidated City Holding Company risk based capital ratios (b):
CET I		16.64	%		16.10	%		16.15	%		15.70	%		15.36	%
Tier I		16.64	%		16.10	%		16.15	%		15.70	%		15.36	%
Total		17.17	%		16.64	%		16.69	%		16.23	%		15.89	%
Leverage		10.59	%		10.30	%		10.45	%		10.23	%		10.05	%
City National Bank risk based capital ratios (b):
CET I		16.00	%		15.17	%		14.60	%		13.79	%		14.73	%
Tier I		16.00	%		15.17	%		14.60	%		13.79	%		14.73	%
Total		16.52	%		15.72	%		15.14	%		14.32	%		15.27	%
Leverage		10.17	%		9.68	%		9.42	%		8.94	%		9.61	%
Other (period-end)
Branches		97			97			97			98			99
FTE		940			948			953			957			966
Assets per FTE (in thousands)	$	6,845		$	6,689		$	6,625		$	6,447		$	6,291
Deposits per FTE (in thousands)		5,428			5,345			5,304			5,157			5,120
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) September 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														Nine Months Ended
	September 30, 2024			June 30, 2024		March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Interest Income
Interest and fees on loans	$	61,407		$	59,285	$	59,128		$	57,755		$	55,582		$	179,820		$	154,939
Interest on investment securities:
Taxable		14,403			13,947		12,040			12,336			12,432			40,390			35,999
Tax-exempt		824			838		830			832			910			2,492			3,022
Interest on deposits in depository institutions		1,417			1,920		1,570			941			1,265			4,907			5,440
Total Interest Income		78,051			75,990		73,568			71,864			70,189			227,609			199,400
Interest Expense
Interest on deposits		17,072			15,897		14,097			12,479			10,551			47,066			24,808
Interest on short-term borrowings		3,788			3,900		3,621			3,693			2,990			11,309			8,334
Interest on FHLB long-term advances		1,586			1,568		1,423			1,026			1,034			4,577			1,683
Total Interest Expense		22,446			21,365		19,141			17,198			14,575			62,952			34,825
Net Interest Income		55,605			54,625		54,427			54,666			55,614			164,657			164,575
Provision for (Recovery of) credit losses		1,200			500		(180	)		(300	)		200			1,520			3,543
Net Interest Income After Provision for (Recovery of) Credit Losses		54,405			54,125		54,607			54,966			55,414			163,137			161,032
Non-Interest Income
Net (losses) gains on sale of investment securities		(12	)		-		(1	)		(4,951	)		(730	)		(13	)		43
Unrealized gains (losses) recognized on equity securities still held		353			364		(152	)		365			-			565			67
Service charges		7,531			6,980		7,035			7,158			7,124			21,546			20,593
Bankcard revenue		7,346			7,245		6,800			7,109			7,058			21,391			20,851
Trust and investment management fee income		2,923			2,762		2,623			2,563			2,409			8,308			7,000
Bank owned life insurance		1,435			775		927			1,218			807			3,137			4,819
Other income		772			785		716			774			742			2,273			3,020
Total Non-Interest Income		20,348			18,911		17,948			14,236			17,410			57,207			56,393
Non-Interest Expense
Salaries and employee benefits		19,245			18,751		18,878			18,772			18,289			56,874			54,391
Occupancy related expense		2,774			2,856		2,840			2,917			2,950			8,470			8,401
Equipment and software related expense		3,431			3,130		2,929			2,824			2,830			9,490			8,805
FDIC insurance expense		734			718		711			868			919			2,163			2,054
Advertising		1,081			972		867			588			790			2,920			2,524
Bankcard expenses		2,271			2,290		2,039			2,014			2,188			6,600			5,433
Postage, delivery, and statement mailings		666			714		666			615			668			2,046			1,911
Office supplies		480			432		453			477			457			1,365			1,468
Legal and professional fees		500			551		482			478			529			1,533			1,557
Telecommunications		578			624		600			614			568			1,802			1,797
Repossessed asset losses (gains), net of expenses		21			6		229			(50	)		40			256			78
Other expenses		5,857			5,728		5,206			4,992			4,800			16,791			19,993
Total Non-Interest Expense		37,638			36,772		35,900			35,109			35,028			110,310			108,412
Income Before Income Taxes		37,115			36,264		36,655			34,093			37,796			110,034			109,013
Income tax expense		7,306			7,149		7,132			6,641			7,957			21,587			22,100
Net Income Available to Common Shareholders	$	29,809		$	29,115	$	29,523		$	27,452		$	29,839		$	88,447		$	86,913
Distributed earnings allocated to common shareholders	$	11,506		$	10,418	$	10,505		$	10,508		$	10,554		$	32,333		$	29,744
Undistributed earnings allocated to common shareholders		18,025			18,439		18,757			16,696			19,004			55,291			56,356
Net earnings allocated to common shareholders	$	29,531		$	28,857	$	29,262		$	27,204		$	29,558		$	87,624		$	86,100
Average common shares outstanding		14,633			14,695		14,795			14,758			14,922			14,691			14,906
Shares for diluted earnings per share		14,654			14,710		14,819			14,785			14,945			14,711			14,928
Basic earnings per common share	$	2.02		$	1.96	$	1.98		$	1.84		$	1.98		$	5.96		$	5.78
Diluted earnings per common share	$	2.02		$	1.96	$	1.97		$	1.84		$	1.98		$	5.96		$	5.77

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Cash and due from banks	$	161,333		$	141,168		$	121,853		$	123,033		$	67,402
Interest-bearing deposits in depository institutions		132,616			76,818			196,829			33,243			43,314
Cash and cash equivalents		293,949			217,986			318,682			156,276			110,716
Investment securities available-for-sale, at fair value		1,462,795			1,456,685			1,347,657			1,338,137			1,358,219
Other securities		30,859			31,237			30,681			30,966			29,022
Total investment securities		1,493,654			1,487,922			1,378,338			1,369,103			1,387,241
Gross loans		4,157,830			4,112,873			4,091,788			4,125,923			4,007,482
Allowance for credit losses		(21,832	)		(22,688	)		(22,310	)		(22,745	)		(23,128	)
Net loans		4,135,998			4,090,185			4,069,478			4,103,178			3,984,354
Bank owned life insurance		120,061			119,650			118,875			118,122			117,979
Premises and equipment, net		70,651			71,041			71,623			72,146			72,682
Accrued interest receivable		21,785			21,826			21,759			20,290			19,223
Net deferred tax assets		33,497			43,602			43,969			42,216			58,811
Goodwill and intangible assets		160,640			161,236			161,832			162,568			163,461
Other assets		104,079			127,947			129,627			124,153			161,659
Total Assets	$	6,434,314		$	6,341,395		$	6,314,183		$	6,168,052		$	6,076,126
Liabilities
Deposits:
Noninterest-bearing	$	1,339,538		$	1,354,660		$	1,359,072		$	1,342,804		$	1,333,474
Interest-bearing:
Demand deposits		1,351,239			1,333,169			1,330,268			1,291,011			1,319,783
Savings deposits		1,208,828			1,233,834			1,266,211			1,259,457			1,282,642
Time deposits		1,203,046			1,145,617			1,100,250			1,040,990			1,009,235
Total deposits		5,102,651			5,067,280			5,055,801			4,934,262			4,945,134
Short-term borrowings
FHLB short-term advances		-			-			-			25,000			-
Customer repurchase agreements		339,153			322,668			304,941			309,856			278,671
FHLB long-term advances		150,000			150,000			150,000			100,000			100,000
Other liabilities		101,211			114,707			121,210			121,868			142,187
Total Liabilities		5,693,015			5,654,655			5,631,952			5,490,986			5,465,992
Stockholders' Equity
Preferred stock		-			-			-			-			-
Common stock		47,619			47,619			47,619			47,619			47,619
Capital surplus		175,602			174,834			175,747			177,424			177,113
Retained earnings		835,778			817,549			799,024			780,299			763,425
Cost of common stock in treasury		(230,836	)		(230,944	)		(218,555	)		(217,737	)		(211,430	)
Accumulated other comprehensive loss:
Unrealized loss on securities available-for-sale		(84,283	)		(119,737	)		(119,023	)		(107,958	)		(163,171	)
Underfunded pension liability		(2,581	)		(2,581	)		(2,581	)		(2,581	)		(3,422	)
Total Accumulated Other Comprehensive Loss		(86,864	)		(122,318	)		(121,604	)		(110,539	)		(166,593	)
Total Stockholders' Equity		741,299			686,740			682,231			677,066			610,134
Total Liabilities and Stockholders' Equity	$	6,434,314		$	6,341,395		$	6,314,183		$	6,168,052		$	6,076,126
Regulatory Capital
Total CET 1 capital	$	669,862		$	650,108		$	644,235		$	627,579		$	615,798
Total tier 1 capital		669,862			650,108			644,235			627,579			615,798
Total risk-based capital		690,857			671,959			665,707			648,646			637,245
Total risk-weighted assets		4,024,686			4,037,614			3,989,171			3,996,688			4,009,798

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Commercial and industrial	$	424,414	$	408,312	$	407,770	$	426,950	$	424,647
1-4 Family		194,670		195,992		202,378		206,237		197,081
Hotels		383,232		370,954		354,929		357,142		321,236
Multi-family		193,875		190,390		186,555		189,165		192,329
Non Residential Non-Owner Occupied		665,210		668,330		682,609		680,590		651,498
Non Residential Owner Occupied		236,826		235,993		232,440		240,328		222,544
Commercial real estate ^(1)		1,673,813		1,661,659		1,658,911		1,673,462		1,584,688
Residential real estate ^(2)		1,806,578		1,797,260		1,786,764		1,788,150		1,768,358
Home equity		190,149		179,607		171,292		167,201		159,630
Consumer		58,710		62,352		63,556		65,246		65,586
DDA overdrafts		4,166		3,683		3,495		4,914		4,573
Gross Loans	$	4,157,830	$	4,112,873	$	4,091,788	$	4,125,923	$	4,007,482
Construction loans included in:
^(1) - Commercial real estate loans	$	2,736	$	2,233	$	6,651	$	2,459	$	2,533
^(2) - Residential real estate loans		7,604		9,766		19,709		23,066		20,056

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
	Three Months Ended															Nine Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Allowance for Credit Losses
Balance at beginning of period	$	22,688		$	22,310		$	22,745		$	23,128		$	22,751		$	22,745		$	17,108
Charge-offs:
Commercial and industrial		(206	)		(61	)		(306	)		(84	)		-			(573	)		(69	)
Commercial real estate		(1,909	)		(40	)		(31	)		(5	)		(256	)		(1,980	)		(376	)
Residential real estate		(43	)		(286	)		(19	)		(68	)		(88	)		(348	)		(140	)
Home equity		(57	)		(121	)		(27	)		(21	)		(112	)		(205	)		(379	)
Consumer		(24	)		(20	)		(115	)		(6	)		(10	)		(159	)		(181	)
DDA overdrafts		(436	)		(373	)		(356	)		(416	)		(422	)		(1,165	)		(1,229	)
Total charge-offs		(2,675	)		(901	)		(854	)		(600	)		(888	)		(4,430	)		(2,374	)
Recoveries:
Commercial and industrial		24			38			25			70			597			87			766
Commercial real estate		193			165			11			17			74			369			260
Residential real estate		27			179			49			4			28			255			43
Home equity		13			38			9			13			18			60			34
Consumer		25			24			98			45			27			147			78
DDA overdrafts		337			335			407			368			321			1,079			1,034
Total recoveries		619			779			599			517			1,065			1,997			2,215
Net (charge-offs) recoveries		(2,056	)		(122	)		(255	)		(83	)		177			(2,433	)		(159	)
Provision for (Recovery of) credit losses		1,200			500			(180	)		(300	)		200			1,520			3,543
PCD Loan Reserves		-			-			-			-			-			-			2,811
Adoption of ASU 2022-02		-			-			-			-			-			-			(175	)
Balance at end of period	$	21,832		$	22,688		$	22,310		$	22,745		$	23,128		$	21,832		$	23,128
Loans outstanding	$	4,157,830		$	4,112,873		$	4,091,788		$	4,125,923		$	4,007,482
Allowance as a percent of loans outstanding		0.53	%		0.55	%		0.55	%		0.55	%		0.58	%
Allowance as a percent of non-performing loans		141.1	%		236.8	%		206.8	%		290.6	%		440.1	%
Average loans outstanding	$	4,133,520		$	4,092,464		$	4,092,529		$	4,045,889		$	3,956,871		$	4,106,271		$	3,852,057
Net charge-offs (recoveries) (annualized) as a percent of average loans outstanding		0.20	%		0.01	%		0.02	%		0.01	%		(0.02	)%		0.08	%		0.01	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Nonaccrual Loans
Residential real estate	$	2,596		$	3,214		$	3,452		$	2,849		$	2,839
Home equity		109			63			121			111			75
Commercial and industrial		3,631			3,135			3,405			2,211			716
Commercial real estate		9,031			3,118			3,807			2,387			1,355
Consumer		-			-			1			-			1
Total nonaccrual loans		15,367			9,530			10,786			7,558			4,986
Accruing loans past due 90 days or more		102			50			-			270			269
Total non-performing loans		15,469			9,580			10,786			7,828			5,255
Other real estate owned		729			629			752			731			720
Total non-performing assets	$	16,198		$	10,209		$	11,538		$	8,559		$	5,975
Non-performing assets as a percent of loans and other real estate owned		0.39	%		0.25	%		0.28	%		0.21	%		0.15	%
Past Due Loans
Residential real estate	$	8,205		$	7,991		$	5,035		$	8,059		$	6,247
Home equity		1,571			819			1,028			1,235			1,278
Commercial and industrial		57			1,087			26			435			568
Commercial real estate		992			565			138			715			1,478
Consumer		161			97			75			129			84
DDA overdrafts		333			327			406			364			398
Total past due loans	$	11,319		$	10,886		$	6,708		$	10,937		$	10,053
Total past due loans as a percent of loans outstanding		0.27	%		0.26	%		0.16	%		0.27	%		0.25	%

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
	Three Months Ended
	September 30, 2024							June 30, 2024							September 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)	$	1,984,502		$	25,654	5.14	%	$	1,969,769		$	24,763	5.06	%	$	1,910,876		$	22,702	4.71	%
Commercial, financial, and agriculture ^(2)		2,082,888			34,708	6.63	%		2,055,263			33,524	6.56	%		1,975,463			31,743	6.38	%
Installment loans to individuals ^(2), (3)		66,130			1,045	6.29	%		67,432			998	5.95	%		70,532			1,138	6.40	%
Total loans		4,133,520			61,407	5.91	%		4,092,464			59,285	5.83	%		3,956,871			55,583	5.57	%
Securities:
Taxable		1,343,323			14,402	4.27	%		1,302,197			13,947	4.31	%		1,277,265			12,432	3.86	%
Tax-exempt ^(4)		159,225			1,043	2.61	%		158,894			1,060	2.68	%		170,806			1,152	2.68	%
Total securities		1,502,548			15,445	4.09	%		1,461,091			15,007	4.13	%		1,448,071			13,584	3.72	%
Deposits in depository institutions		103,322			1,417	5.46	%		139,852			1,920	5.52	%		90,684			1,265	5.53	%
Total interest-earning assets		5,739,390			78,269	5.43	%		5,693,407			76,212	5.38	%		5,495,626			70,432	5.08	%
Cash and due from banks		110,765							103,004							69,658
Premises and equipment, net		70,998							71,491							73,004
Goodwill and intangible assets		161,009							161,607							163,602
Other assets		292,758							316,440							332,551
Less: Allowance for credit losses		(23,205	)						(22,694	)						(23,558	)
Total assets	$	6,351,715						$	6,323,255						$	6,110,883
Liabilities:
Interest-bearing demand deposits	$	1,321,922		$	4,100	1.23	%	$	1,320,402		$	3,845	1.17	%	$	1,300,936		$	3,068	0.94	%
Savings deposits		1,220,009			2,200	0.72	%		1,248,330			2,232	0.72	%		1,314,484			2,319	0.70	%
Time deposits ^(2)		1,174,217			10,772	3.65	%		1,125,036			9,820	3.51	%		985,038			5,163	2.08	%
Short-term borrowings		323,844			3,788	4.65	%		336,434			3,900	4.66	%		272,558			2,990	4.35	%
FHLB long-term advances		150,000			1,586	4.21	%		150,000			1,568	4.20	%		100,000			1,035	4.11	%
Total interest-bearing liabilities		4,189,992			22,446	2.13	%		4,180,202			21,365	2.06	%		3,973,016			14,575	1.46	%
Noninterest-bearing demand deposits		1,334,762							1,341,642							1,359,268
Other liabilities		99,797							112,301							123,137
Stockholders' equity		727,164							689,110							655,462
Total liabilities and stockholders' equity	$	6,351,715						$	6,323,255						$	6,110,883
Net interest income				$	55,823						$	54,847						$	55,857
Net yield on earning assets						3.87	%						3.87	%						4.03	%
(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				$	127						$	60						$	254
(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				$	27						$	72						$	47
Commercial, financial, and agriculture					752							683							720
Installment loans to individuals					5							6							4
Time deposits					14							21							240
				$	798						$	782						$	1,011
(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)
	Nine Months Ended
	September 30, 2024							September 30, 2023
	Average					Yield/		Average					Yield/
	Balance			Interest		Rate		Balance			Interest		Rate
Assets:
Loan portfolio ^(1):
Residential real estate ^(2)	$	1,968,377		$	74,566	5.06	%	$	1,882,397		$	64,410	4.57	%
Commercial, financial, and agriculture ^(2)		2,070,431			102,211	6.59	%		1,904,001			87,745	6.16	%
Installment loans to individuals ^(2), (3)		67,463			3,042	6.02	%		65,659			2,784	5.67	%
Total loans		4,106,271			179,819	5.85	%		3,852,057			154,939	5.38	%
Securities:
Taxable		1,282,167			40,390	4.21	%		1,300,373			35,999	3.70	%
Tax-exempt ^(4)		159,654			3,154	2.64	%		182,858			3,826	2.80	%
Total securities		1,441,821			43,544	4.03	%		1,483,231			39,825	3.59	%
Deposits in depository institutions		119,649			4,907	5.48	%		166,116			5,440	4.38	%
Total interest-earning assets		5,667,741			228,270	5.38	%		5,501,404			200,204	4.87	%
Cash and due from banks		104,269							69,998
Premises and equipment, net		71,479							72,631
Goodwill and intangible assets		161,622							150,808
Other assets		305,113							324,658
Less: Allowance for credit losses		(23,014	)						(21,602	)
Total assets	$	6,287,210						$	6,097,897
Liabilities:
Interest-bearing demand deposits	$	1,308,779		$	11,384	1.16	%	$	1,288,387		$	7,582	0.79	%
Savings deposits		1,240,788			6,705	0.72	%		1,352,005			5,610	0.55	%
Time deposits ^(2)		1,124,295			28,977	3.44	%		950,276			11,616	1.63	%
Short-term borrowings		324,631			11,309	4.65	%		282,857			8,334	3.94	%
FHLB long-term advances		145,620			4,577	4.20	%		55,678			1,683	4.04	%
Total interest-bearing liabilities		4,144,113			62,952	2.03	%		3,929,203			34,825	1.18	%
Noninterest-bearing demand deposits		1,332,988							1,407,922
Other liabilities		109,194							122,854
Stockholders' equity		700,915							637,918
Total liabilities and stockholders' equity	$	6,287,210						$	6,097,897
Net interest income				$	165,318						$	165,379
Net yield on earning assets						3.90	%						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				$	320						$	1,165
(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				$	145						$	165
Commercial, financial, and agriculture					2,499							1,575
Installment loans to individuals					17							15
Time deposits					98							403
				$	2,759						$	2,158
(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															Nine Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024		September 30, 2023
Net Interest Income/Margin
Net interest income ("GAAP")	$	55,605		$	54,625		$	54,427		$	54,666		$	55,614		$	164,657	$	164,575
Taxable equivalent adjustment		218			222			220			223			243			661		804
Net interest income, fully taxable equivalent	$	55,823		$	54,847		$	54,647		$	54,889		$	55,857		$	165,318	$	165,379
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")		11.52	%		10.83	%		10.81	%		10.98	%		10.04	%
Effect of goodwill and other intangibles, net		(2.26	)%		(2.33	)%		(2.35	)%		(2.41	)%		(2.49	)%
Tangible common equity to tangible assets		9.26	%		8.50	%		8.46	%		8.57	%		7.55	%
Commercial Loan Information (period end)
Commercial Sector	Total			% of Total Loans			Average DSC			Average LTV
Natural Gas Extraction	$	26,463			0.64	%		3.71		NA
Natural Gas Distribution		19,295			0.46	%		5.46		NA
Masonry Contractors		24,847			0.60	%		1.04		84%
Sheet Metal Work Manufacturing		24,917			0.60	%		1.22		68%
Beer & Ale Merchant Wholesalers		26,613			0.64	%		3.28		NA
Gasoline Stations with Convenience Stores		39,391			0.95	%		4.76		65%
Lessors of Residential Builidings & Dwellings		424,956			10.24	%		1.89		66%
1-4 Family		187,609			4.52	%		2.97		67%
Multi-Family		171,726			4.14	%		1.84		64%
Lessors of Nonresidential Buildings		583,124			14.05	%		1.70		65%
Office Buildings		136,697			3.29	%		1.64		62%
Lessors of Mini-Warehouses & Self-Storage Units		54,043			1.30	%		1.43		61%
Assisted Living Facilities		26,580			0.64	%		1.38		61%
Hotels & Motels		383,651			9.24	%		1.45		63%
	Average Balance			Median Balance
Commercial, Financial, and Agriculture Loans	$	451		$	94
Commercial Real Estate Loans		515			123

CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations, continued
(Unaudited) ($ in 000s, except per share data)
Estimated Uninsured Deposits by Deposit Type
	September 30, 2024		June 30, 2024
Noninterest-Bearing Demand Deposits	18	%	17	%
Interest-Bearing Deposits
Demand Deposits	16	%	13	%
Savings Deposits	12	%	12	%
Time Deposits	16	%	16	%
Total Deposits	15	%	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	24,853	4,007	1.6	%
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).