City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $4.9 billion
bank holding company headquartered in Charleston, West Virginia, today
announced quarterly net income of $21.6 million and diluted earnings of
$1.30 per share for the quarter ended March 31, 2019. For the first
quarter of 2019, the Company achieved a return on assets of 1.76% and a
return on tangible equity of 17.7%. In addition, reported net interest
income increased $7.4 million (22.7%) from the quarter ended March 31,
2018, while net interest income exclusive of accretion from fair value
adjustments from acquisitions increased $7.2 million (22.2%) from the
quarter ended March 31, 2018.
Net Interest Income
The Company’s net interest income increased from $36.4 million during
the fourth quarter of 2018 to $40.1 million during the first quarter of
2019. During the first quarter of 2019, the Company’s tax equivalent net
interest income increased $3.6 million, or 10.0%, from $36.6 million for
the fourth quarter of 2018 to $40.3 million for the first quarter of
2019. The acquisitions of Poage and Farmers Deposit accounted for $3.0
million of this increase. In addition, higher loan yields (22 basis
points) increased net interest income by $1.1 million while higher
average loan balances ($59.1 million) increased net interest income by
$0.6 million. These increases were partially offset by an increase in
rates paid on deposits ($0.5 million) and decreased income from deposits
in depository institutions ($0.4 million). The Company’s reported net
interest margin increased from 3.55% for the fourth quarter of 2018 to
3.66% for the first quarter of 2019. Excluding the favorable impact of
the accretion from fair value adjustments, the net interest margin would
have been 3.61% for the quarter ended March 31, 2019 and 3.50% for the
quarter ended December 31, 2018.
Credit Quality
The Company’s ratio of nonperforming assets to total loans and other
real estate owned improved from 0.54% at December 31, 2018 to 0.43% at
March 31, 2019. Total nonperforming assets decreased from $19.4 million
at December 31, 2018 to $15.4 million at March 31, 2019. Excluded from
this ratio are purchased credit-impaired loans for which the Company
estimated cash flows and estimated a credit mark. Such loans would be
considered nonperforming loans if the loan’s performance deteriorates
below the Company’s initial expectations. Total past due loans decreased
from $13.1 million, or 0.37% of total loans outstanding, at December 31,
2018 to $11.0 million, or 0.31% of total loans outstanding, at March 31,
2019.
As a result of the Company’s quarterly analysis of the adequacy of the
allowance for loan losses (“ALLL”), the Company recorded a recovery of
loan loss provision of $0.8 million in the first quarter of 2019,
compared to a provision for loan loss provision of $0.2 million for the
comparable period in 2018 and a recovery of loan loss provision of $0.4
million for the fourth quarter of 2018. The recovery of loan loss
provision recorded in the first quarter of 2019 reflects a general
improvement in the Company’s historical loss rates used to compute the
allowance not specifically allocated to individual credits and a modest
decline in loans outstanding from December 31, 2018. Changes in the
amount of the provision and related allowance are based on the Company’s
detailed systematic methodology and are directionally consistent with
changes in the composition and quality of the Company’s loan portfolio.
The Company believes its methodology for determining the adequacy of its
ALLL adequately provides for probable losses inherent in the loan
portfolio and produces a provision and allowance for loan losses that is
directionally consistent with changes in asset quality and loss
experience.
Non-interest Income
Non-interest income was $15.9 million for the first quarter of 2019 as
compared to $14.5 million for the first quarter of 2018. During the
first quarter of 2019, the Company realized a security gain of $0.1
million due to the call of a security and $0.1 million of unrealized
fair value gains on the Company’s equity securities compared to $0.3
million of unrealized fair value gains on the Company’s equity
securities in the first quarter of 2018. The Company’s portfolio of
equity securities is comprised primarily of equity investments in
community bank holding companies and perpetual preferred securities of
national bank holding companies. As of April 17, 2019, the Company’s
portfolio of community bank holding company equities consists primarily
of the following: First National Corporation (FXNC) (4.0% ownership);
Eagle Financial Services, Inc. (EFSI) (1.5% ownership); Summit Financial
Corporation (SMMF) (<1% ownership); Potomac Bancshares, Inc. (PTBS) (<1%
ownership). Exclusive of these gains, non-interest income increased from
$14.2 million for the first quarter of 2018 to $15.8 million for the
first quarter of 2019. This increase was largely attributable to an
increase of $0.6 million, or 14.7%, in bankcard revenues and an increase
of $0.5 million, or 6.7%, in service charges, with $0.4 million and $0.3
million, respectively, attributable to the acquisitions of Poage and
Farmers Deposit. In addition, bank owned life insurance revenues
increased $0.2 million due to death benefit proceeds received in the
first quarter of 2019 and other income increased $0.2 million.
Non-interest Expenses
During the quarter ended March 31, 2019, the Company incurred an
additional $0.3 million of acquisition and integration expenses
associated with the acquisitions of Poage and Farmers Deposit. Excluding
this expense, non-interest expenses increased $4.2 million (16.9%
increase), from $24.9 million in the first quarter of 2018 to $29.2
million in the first quarter of 2019. This increase was primarily due to
an increase in salaries and employee benefits of $2.0 million due
primarily to the acquisitions of Poage and Farmers Deposit ($0.9
million) and annual salary adjustments ($0.7 million). In addition,
other expenses increased $1.1 million, equipment and software related
expenses increased $0.4 million and occupancy related expenses increased
$0.3 million. These increases were primarily attributable to the
acquisitions of Poage and Farmers Deposit.
Balance Sheet Trends
Loans decreased $28.3 million (0.8%) from December 31, 2018 to $3.56
billion at March 31, 2019. Commercial real estate loans decreased $18.8
million (1.3%), residential real estate loans decreased $9.7 million
(0.6%), and home equity loans decreased $1.2 million (0.8%). These
decreases were partially offset by an increase in commercial and
industrial loans of $3.0 million (1.1%).
Total average depository balances increased $380.0 million, or 10.5%,
from the quarter ended December 31, 2018 to the quarter ended March 31,
2019. This growth was primarily attributable to deposits acquired from
Poage and Farmers Deposit ($472.0 million) that were outstanding for the
entire quarter ended March 31, 2019, as compared to less than one month
during the quarter ended December 31, 2018. Exclusive of this
contribution, average time deposit balances increased $28.5 million, and
average savings deposit balances increased $15.1 million. These
increases were partially offset by lower noninterest-bearing demand
deposit balances of $12.6 million.
Income Tax Expense
The Company’s effective income tax rate for the first quarter of 2019
was 21.2% compared to 20.5% for the year ended December 31, 2018, and
20.0% for the quarter ended March 31, 2018.
Capitalization and Liquidity
The Company’s loan to deposit ratio was 88.0% and the loan to asset
ratio was 72.4% at March 31, 2019. The Company maintained investment
securities totaling 17.0% of assets as of the same date. The Company’s
deposit mix is weighted heavily toward checking and saving accounts,
which fund 54.1% of assets at March 31, 2019. Time deposits fund 28.1%
of assets at March 31, 2019, but very few of these deposits are in
accounts that have balances of more than $250,000, reflecting the core
retail orientation of the Company.
The Company is also strongly capitalized. The Company’s tangible equity
ratio increased from 10.0% at December 31, 2018 to 10.4% at March 31,
2019. At March 31, 2019, City National Bank’s Leverage Ratio was 9.45%,
its Common Equity Tier I ratio was 13.89%, its Tier I Capital ratio was
13.89%, and its Total Risk-Based Capital ratio was 14.36%. These
regulatory capital ratios are significantly above levels required to be
considered “well capitalized,” which is the highest possible regulatory
designation.
On March 27, 2019, the Board of Directors of the Company approved a
quarterly cash dividend of $0.53 per share payable April 30, 2019, to
shareholders of record as of April 15, 2019. On February 27, 2019, the
Company announced that the Board of Directors authorized the Company to
buy back up to 1,000,000 shares of its common stock (approximately 6% of
outstanding shares) in open market transactions at prices that are
accretive to the earnings per share of continuing shareholders. No time
limit was placed on the duration of the share repurchase program. As
part of this authorization, the Company terminated its previous
repurchase program that was approved in September 2014. The Company had
repurchased 888,243 shares under the 2014 program. During the quarter
ended March 31, 2019, the Company repurchased 55,000 common shares at a
weighted average price of $74.69. As of March 31, 2019, the Company
could repurchase approximately 945,000 additional shares under the
current program.
City Holding Company is the parent company of City National Bank of West
Virginia. City National Bank 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, 2018 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 loan 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; (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; (14) the expected cost savings and any revenue
synergies from the merger of City Holding Company, City National Bank of
West Virginia, Poage Bankshares, Inc., Town Square Bank, Farmers Deposit
Bancorp, Inc. and Farmers Deposit Bank may not be fully realized within
the expected time frames; (15) the disruption from the merger of City
Holding Company, City National Bank of West Virginia, Poage Bankshares,
Inc., Town Square Bank, Farmers Deposit Bancorp, Inc. and Farmers
Deposit Bank may make it more difficult to maintain relationships with
clients, associates, or suppliers; and (16) other economic, competitive,
technological, operational, governmental, regulatory, and market factors
affecting our operations. Forward-looking statements made herein
reflect management's expectations as of the date such statements are
made. Such information is provided to assist stockholders and potential
investors in understanding current and anticipated financial operations
of the Company and is included pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances that arise after the date such
statements are made. Further, the Company is required to evaluate
subsequent events through the filing of its March 31, 2019 Form 10-Q.
The Company will continue to evaluate the impact of any subsequent
events on the preliminary March 31, 2019 results and will adjust the
amounts if necessary.
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Financial Highlights
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (fully taxable equivalent)
|
|
$
|
40,274
|
|
|
$
|
36,625
|
|
|
$
|
35,745
|
|
|
$
|
33,760
|
|
|
$
|
32,834
|
|
Net Income available to common shareholders
|
|
|
21,619
|
|
|
|
10,713
|
|
|
|
20,692
|
|
|
|
20,979
|
|
|
|
17,616
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data
|
|
|
|
|
|
|
|
|
|
|
Earnings per share available to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.31
|
|
|
$
|
0.68
|
|
|
$
|
1.34
|
|
|
$
|
1.36
|
|
|
$
|
1.13
|
|
Diluted
|
|
|
1.30
|
|
|
|
0.68
|
|
|
|
1.33
|
|
|
|
1.35
|
|
|
|
1.13
|
|
Weighted average number of shares (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,411
|
|
|
|
15,603
|
|
|
|
15,340
|
|
|
|
15,326
|
|
|
|
15,414
|
|
Diluted
|
|
|
16,429
|
|
|
|
15,618
|
|
|
|
15,358
|
|
|
|
15,345
|
|
|
|
15,436
|
|
Period-end number of shares (in thousands)
|
|
|
16,484
|
|
|
|
16,555
|
|
|
|
15,449
|
|
|
|
15,452
|
|
|
|
15,439
|
|
Cash dividends declared
|
|
$
|
0.53
|
|
|
$
|
0.53
|
|
|
$
|
0.53
|
|
|
$
|
0.46
|
|
|
$
|
0.46
|
|
Book value per share (period-end)
|
|
$
|
37.57
|
|
|
$
|
36.29
|
|
|
$
|
33.14
|
|
|
$
|
32.60
|
|
|
$
|
31.86
|
|
Tangible book value per share (period-end)
|
|
|
30.18
|
|
|
|
28.87
|
|
|
|
28.08
|
|
|
|
27.53
|
|
|
|
26.78
|
|
Market data:
|
|
|
|
|
|
|
|
|
|
|
High closing price
|
|
$
|
80.21
|
|
|
$
|
77.94
|
|
|
$
|
82.79
|
|
|
$
|
78.44
|
|
|
$
|
72.87
|
|
Low closing price
|
|
|
67.58
|
|
|
|
66.36
|
|
|
|
75.54
|
|
|
|
67.95
|
|
|
|
65.03
|
|
Period-end closing price
|
|
|
76.19
|
|
|
|
67.59
|
|
|
|
76.80
|
|
|
|
75.23
|
|
|
|
68.56
|
|
Average daily volume (in thousands)
|
|
|
54
|
|
|
|
66
|
|
|
|
54
|
|
|
|
60
|
|
|
|
56
|
|
Treasury share activity:
|
|
|
|
|
|
|
|
|
|
|
Treasury shares repurchased (in thousands)
|
|
|
55
|
|
|
|
69
|
|
|
|
7
|
|
|
|
10
|
|
|
|
204
|
|
Average treasury share repurchase price
|
|
$
|
74.69
|
|
|
$
|
72.89
|
|
|
$
|
77.18
|
|
|
$
|
69.26
|
|
|
$
|
68.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Ratios (percent)
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.76
|
%
|
|
|
0.96
|
%
|
|
|
1.90
|
%
|
|
|
2.00
|
%
|
|
|
1.69
|
%
|
Return on average tangible equity
|
|
|
17.7
|
%
|
|
|
9.6
|
%
|
|
|
18.9
|
%
|
|
|
19.9
|
%
|
|
|
16.7
|
%
|
Yield on interest earning assets
|
|
|
4.46
|
%
|
|
|
4.32
|
%
|
|
|
4.25
|
%
|
|
|
4.15
|
%
|
|
|
4.05
|
%
|
Cost of interest bearing liabilities
|
|
|
1.04
|
%
|
|
|
1.00
|
%
|
|
|
0.92
|
%
|
|
|
0.76
|
%
|
|
|
0.69
|
%
|
Net Interest Margin
|
|
|
3.66
|
%
|
|
|
3.55
|
%
|
|
|
3.54
|
%
|
|
|
3.52
|
%
|
|
|
3.51
|
%
|
Non-interest income as a percent of total revenue
|
|
|
28.3
|
%
|
|
|
28.8
|
%
|
|
|
30.7
|
%
|
|
|
31.7
|
%
|
|
|
30.7
|
%
|
Efficiency Ratio
|
|
|
51.2
|
%
|
|
|
47.6
|
%
|
|
|
48.3
|
%
|
|
|
50.7
|
%
|
|
|
52.7
|
%
|
Price/Earnings Ratio (a)
|
|
|
14.58
|
|
|
|
24.82
|
|
|
|
14.37
|
|
|
|
13.88
|
|
|
|
15.17
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (period-end)
|
|
|
|
|
|
|
|
|
|
|
Average Shareholders' Equity to Average Assets
|
|
|
12.49
|
%
|
|
|
12.05
|
%
|
|
|
11.81
|
%
|
|
|
11.88
|
%
|
|
|
12.05
|
%
|
Tangible equity to tangible assets
|
|
|
10.37
|
%
|
|
|
10.01
|
%
|
|
|
9.99
|
%
|
|
|
9.90
|
%
|
|
|
10.03
|
%
|
Consolidated City Holding Company risk based capital ratios (b):
|
|
|
|
|
|
|
|
|
|
|
CET I
|
|
|
15.55
|
%
|
|
|
15.07
|
%
|
|
|
15.94
|
%
|
|
|
15.49
|
%
|
|
|
15.08
|
%
|
Tier I
|
|
|
15.67
|
%
|
|
|
15.20
|
%
|
|
|
16.49
|
%
|
|
|
16.05
|
%
|
|
|
15.64
|
%
|
Total
|
|
|
16.13
|
%
|
|
|
15.69
|
%
|
|
|
17.08
|
%
|
|
|
16.65
|
%
|
|
|
16.31
|
%
|
Leverage
|
|
|
10.62
|
%
|
|
|
11.36
|
%
|
|
|
11.01
|
%
|
|
|
11.13
|
%
|
|
|
10.90
|
%
|
City National Bank risk based capital ratios (b):
|
|
|
|
|
|
|
|
|
|
|
CET I
|
|
|
13.89
|
%
|
|
|
13.05
|
%
|
|
|
14.00
|
%
|
|
|
13.26
|
%
|
|
|
12.59
|
%
|
Tier I
|
|
|
13.89
|
%
|
|
|
13.05
|
%
|
|
|
14.00
|
%
|
|
|
13.26
|
%
|
|
|
12.59
|
%
|
Total
|
|
|
14.36
|
%
|
|
|
13.55
|
%
|
|
|
14.59
|
%
|
|
|
13.87
|
%
|
|
|
13.25
|
%
|
Leverage
|
|
|
9.45
|
%
|
|
|
9.81
|
%
|
|
|
9.39
|
%
|
|
|
9.24
|
%
|
|
|
8.81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other (period-end)
|
|
|
|
|
|
|
|
|
|
|
Branches
|
|
|
97
|
|
|
|
100
|
|
|
|
87
|
|
|
|
86
|
|
|
|
86
|
|
FTE
|
|
|
927
|
|
|
|
939
|
|
|
|
846
|
|
|
|
849
|
|
|
|
832
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets per FTE (in thousands)
|
|
$
|
5,305
|
|
|
$
|
5,498
|
|
|
$
|
5,226
|
|
|
$
|
5,152
|
|
|
$
|
5,048
|
|
Deposits per FTE (in thousands)
|
|
|
4,361
|
|
|
|
4,462
|
|
|
|
4,070
|
|
|
|
4,030
|
|
|
|
4,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The price/earnings ratio is computed based on annualized
quarterly earnings.
|
(b) March 31, 2019 risk-based capital ratios are estimated.
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Statements of Income
|
(Unaudited) ($ in 000s, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
$
|
42,279
|
|
|
$
|
37,973
|
|
|
$
|
36,872
|
|
|
$
|
34,292
|
|
|
$
|
32,918
|
Interest on investment securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
5,689
|
|
|
|
5,023
|
|
|
|
4,216
|
|
|
|
4,117
|
|
|
|
3,981
|
Tax-exempt
|
|
|
779
|
|
|
|
729
|
|
|
|
701
|
|
|
|
710
|
|
|
|
703
|
Interest on deposits in depository institutions
|
|
|
186
|
|
|
|
623
|
|
|
|
940
|
|
|
|
61
|
|
|
|
42
|
Total Interest Income
|
|
|
48,933
|
|
|
|
44,348
|
|
|
|
42,729
|
|
|
|
39,180
|
|
|
|
37,644
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
|
7,767
|
|
|
|
6,656
|
|
|
|
5,497
|
|
|
|
4,918
|
|
|
|
4,326
|
Interest on short-term borrowings
|
|
|
1,052
|
|
|
|
1,061
|
|
|
|
1,435
|
|
|
|
459
|
|
|
|
460
|
Interest on long-term debt
|
|
|
48
|
|
|
|
200
|
|
|
|
239
|
|
|
|
230
|
|
|
|
211
|
Total Interest Expense
|
|
|
8,867
|
|
|
|
7,917
|
|
|
|
7,171
|
|
|
|
5,607
|
|
|
|
4,997
|
Net Interest Income
|
|
|
40,066
|
|
|
|
36,431
|
|
|
|
35,558
|
|
|
|
33,573
|
|
|
|
32,647
|
(Recovery of) provision for loan losses
|
|
|
(849
|
)
|
|
|
(400
|
)
|
|
|
(27
|
)
|
|
|
(2,064
|
)
|
|
|
181
|
Net Interest Income After (Recovery of) Provision for Loan Losses
|
|
|
40,915
|
|
|
|
36,831
|
|
|
|
35,585
|
|
|
|
35,637
|
|
|
|
32,466
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|
Net gains on sale of investment securities
|
|
|
88
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Unrealized gains (losses) recognized on securities still held
|
|
|
75
|
|
|
|
(1,246
|
)
|
|
|
384
|
|
|
|
492
|
|
|
|
280
|
Service charges
|
|
|
7,321
|
|
|
|
7,921
|
|
|
|
7,598
|
|
|
|
7,323
|
|
|
|
6,862
|
Bankcard revenue
|
|
|
4,969
|
|
|
|
4,826
|
|
|
|
4,677
|
|
|
|
4,532
|
|
|
|
4,334
|
Trust and investment management fee income
|
|
|
1,642
|
|
|
|
1,737
|
|
|
|
1,579
|
|
|
|
1,645
|
|
|
|
1,568
|
Bank owned life insurance
|
|
|
1,016
|
|
|
|
734
|
|
|
|
813
|
|
|
|
722
|
|
|
|
821
|
Other income
|
|
|
814
|
|
|
|
734
|
|
|
|
702
|
|
|
|
897
|
|
|
|
627
|
Total Non-Interest Income
|
|
|
15,925
|
|
|
|
14,706
|
|
|
|
15,753
|
|
|
|
15,611
|
|
|
|
14,492
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
15,243
|
|
|
|
14,017
|
|
|
|
13,576
|
|
|
|
13,551
|
|
|
|
13,241
|
Occupancy related expense
|
|
|
2,732
|
|
|
|
2,250
|
|
|
|
2,323
|
|
|
|
2,346
|
|
|
|
2,404
|
Equipment and software related expense
|
|
|
2,191
|
|
|
|
2,038
|
|
|
|
1,965
|
|
|
|
1,895
|
|
|
|
1,831
|
FDIC insurance expense
|
|
|
291
|
|
|
|
308
|
|
|
|
315
|
|
|
|
313
|
|
|
|
315
|
Advertising
|
|
|
869
|
|
|
|
530
|
|
|
|
808
|
|
|
|
849
|
|
|
|
787
|
Bankcard expenses
|
|
|
1,182
|
|
|
|
1,229
|
|
|
|
1,134
|
|
|
|
1,064
|
|
|
|
1,076
|
Postage, delivery, and statement mailings
|
|
|
624
|
|
|
|
527
|
|
|
|
537
|
|
|
|
515
|
|
|
|
578
|
Office supplies
|
|
|
386
|
|
|
|
313
|
|
|
|
364
|
|
|
|
329
|
|
|
|
313
|
Legal and professional fees
|
|
|
521
|
|
|
|
469
|
|
|
|
453
|
|
|
|
475
|
|
|
|
450
|
Telecommunications
|
|
|
726
|
|
|
|
401
|
|
|
|
408
|
|
|
|
441
|
|
|
|
500
|
Repossessed asset losses, net of expenses
|
|
|
216
|
|
|
|
207
|
|
|
|
156
|
|
|
|
112
|
|
|
|
370
|
Merger related expenses
|
|
|
250
|
|
|
|
13,015
|
|
|
|
242
|
|
|
|
-
|
|
|
|
-
|
Other expenses
|
|
|
4,180
|
|
|
|
2,874
|
|
|
|
2,759
|
|
|
|
3,021
|
|
|
|
3,072
|
Total Non-Interest Expense
|
|
|
29,411
|
|
|
|
38,178
|
|
|
|
25,040
|
|
|
|
24,911
|
|
|
|
24,937
|
Income Before Income Taxes
|
|
|
27,429
|
|
|
|
13,359
|
|
|
|
26,298
|
|
|
|
26,337
|
|
|
|
22,021
|
Income tax expense
|
|
|
5,810
|
|
|
|
2,646
|
|
|
|
5,606
|
|
|
|
5,358
|
|
|
|
4,405
|
Net Income Available to Common Shareholders
|
|
$
|
21,619
|
|
|
$
|
10,713
|
|
|
$
|
20,692
|
|
|
$
|
20,979
|
|
|
$
|
17,616
|
|
|
|
|
|
|
|
|
|
|
|
Distributed earnings allocated to common shareholders
|
|
$
|
8,661
|
|
|
$
|
8,695
|
|
|
$
|
8,109
|
|
|
$
|
7,039
|
|
|
$
|
7,023
|
Undistributed earnings allocated to common shareholders
|
|
|
12,772
|
|
|
|
1,928
|
|
|
|
12,382
|
|
|
|
13,729
|
|
|
|
10,398
|
Net earnings allocated to common shareholders
|
|
$
|
21,433
|
|
|
$
|
10,623
|
|
|
$
|
20,491
|
|
|
$
|
20,768
|
|
|
$
|
17,421
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding
|
|
|
16,411
|
|
|
|
15,603
|
|
|
|
15,340
|
|
|
|
15,326
|
|
|
|
15,414
|
Shares for diluted earnings per share
|
|
|
16,429
|
|
|
|
15,618
|
|
|
|
15,358
|
|
|
|
15,345
|
|
|
|
15,436
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$
|
1.31
|
|
|
$
|
0.68
|
|
|
$
|
1.34
|
|
|
$
|
1.36
|
|
|
$
|
1.13
|
Diluted earnings per common share
|
|
$
|
1.30
|
|
|
$
|
0.68
|
|
|
$
|
1.33
|
|
|
$
|
1.35
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Balance Sheets
|
($ in 000s)
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
50,522
|
|
|
$
|
55,016
|
|
|
$
|
49,806
|
|
|
$
|
43,466
|
|
|
$
|
39,340
|
|
Interest-bearing deposits in depository institutions
|
|
|
93,328
|
|
|
|
67,975
|
|
|
|
256,104
|
|
|
|
222,058
|
|
|
|
84,438
|
|
Cash and cash equivalents
|
|
|
143,850
|
|
|
|
122,991
|
|
|
|
305,910
|
|
|
|
265,524
|
|
|
|
123,778
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale, at fair value
|
|
|
755,081
|
|
|
|
723,254
|
|
|
|
563,003
|
|
|
|
552,603
|
|
|
|
545,628
|
|
Investment securities held-to-maturity, at amortized cost
|
|
|
55,326
|
|
|
|
60,827
|
|
|
|
57,812
|
|
|
|
60,030
|
|
|
|
62,277
|
|
Other securities
|
|
|
26,182
|
|
|
|
28,810
|
|
|
|
28,875
|
|
|
|
28,920
|
|
|
|
22,165
|
|
Total investment securities
|
|
|
836,589
|
|
|
|
812,891
|
|
|
|
649,690
|
|
|
|
641,553
|
|
|
|
630,070
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans
|
|
|
3,559,322
|
|
|
|
3,587,608
|
|
|
|
3,146,697
|
|
|
|
3,155,468
|
|
|
|
3,137,681
|
|
Allowance for loan losses
|
|
|
(14,646
|
)
|
|
|
(15,966
|
)
|
|
|
(16,311
|
)
|
|
|
(16,876
|
)
|
|
|
(18,381
|
)
|
Net loans
|
|
|
3,544,676
|
|
|
|
3,571,642
|
|
|
|
3,130,386
|
|
|
|
3,138,592
|
|
|
|
3,119,300
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank owned life insurance
|
|
|
114,256
|
|
|
|
113,544
|
|
|
|
105,372
|
|
|
|
104,773
|
|
|
|
104,052
|
|
Premises and equipment, net
|
|
|
78,747
|
|
|
|
78,383
|
|
|
|
72,484
|
|
|
|
72,482
|
|
|
|
72,920
|
|
Accrued interest receivable
|
|
|
13,657
|
|
|
|
12,424
|
|
|
|
11,449
|
|
|
|
9,348
|
|
|
|
9,528
|
|
Net deferred tax assets
|
|
|
12,734
|
|
|
|
17,338
|
|
|
|
15,653
|
|
|
|
14,528
|
|
|
|
14,467
|
|
Intangible assets
|
|
|
121,790
|
|
|
|
122,848
|
|
|
|
78,215
|
|
|
|
78,342
|
|
|
|
78,468
|
|
Other assets
|
|
|
51,309
|
|
|
|
46,951
|
|
|
|
51,643
|
|
|
|
49,241
|
|
|
|
47,432
|
|
Total Assets
|
|
$
|
4,917,608
|
|
|
$
|
4,899,012
|
|
|
$
|
4,420,802
|
|
|
$
|
4,374,383
|
|
|
$
|
4,200,015
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
793,633
|
|
|
$
|
789,119
|
|
|
$
|
672,042
|
|
|
$
|
684,614
|
|
|
$
|
703,209
|
|
Interest-bearing:
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
|
879,279
|
|
|
|
899,568
|
|
|
|
802,490
|
|
|
|
785,933
|
|
|
|
816,976
|
|
Savings deposits
|
|
|
988,182
|
|
|
|
934,218
|
|
|
|
821,390
|
|
|
|
817,547
|
|
|
|
816,245
|
|
Time deposits
|
|
|
1,381,913
|
|
|
|
1,352,654
|
|
|
|
1,147,709
|
|
|
|
1,133,684
|
|
|
|
1,110,532
|
|
Total deposits
|
|
|
4,043,007
|
|
|
|
3,975,559
|
|
|
|
3,443,631
|
|
|
|
3,421,778
|
|
|
|
3,446,962
|
|
Short-term borrowings
|
|
|
|
|
|
|
|
|
|
|
Federal Funds purchased
|
|
|
-
|
|
|
|
40,000
|
|
|
|
170,000
|
|
|
|
181,375
|
|
|
|
-
|
|
Customer repurchase agreements
|
|
|
194,683
|
|
|
|
221,911
|
|
|
|
220,124
|
|
|
|
196,635
|
|
|
|
195,375
|
|
Long-term debt
|
|
|
4,053
|
|
|
|
4,053
|
|
|
|
16,495
|
|
|
|
16,495
|
|
|
|
16,495
|
|
Other liabilities
|
|
|
56,624
|
|
|
|
56,725
|
|
|
|
58,526
|
|
|
|
54,346
|
|
|
|
49,306
|
|
Total Liabilities
|
|
|
4,298,367
|
|
|
|
4,298,248
|
|
|
|
3,908,776
|
|
|
|
3,870,629
|
|
|
|
3,708,138
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Common stock
|
|
|
47,619
|
|
|
|
47,619
|
|
|
|
47,619
|
|
|
|
47,619
|
|
|
|
47,619
|
|
Capital surplus
|
|
|
170,215
|
|
|
|
169,555
|
|
|
|
140,450
|
|
|
|
140,091
|
|
|
|
140,547
|
|
Retained earnings
|
|
|
498,847
|
|
|
|
485,967
|
|
|
|
484,017
|
|
|
|
471,515
|
|
|
|
457,650
|
|
Cost of common stock in treasury
|
|
|
(91,589
|
)
|
|
|
(87,895
|
)
|
|
|
(136,783
|
)
|
|
|
(136,520
|
)
|
|
|
(137,420
|
)
|
Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on securities available-for-sale
|
|
|
20
|
|
|
|
(8,611
|
)
|
|
|
(18,244
|
)
|
|
|
(13,918
|
)
|
|
|
(11,486
|
)
|
Underfunded pension liability
|
|
|
(5,871
|
)
|
|
|
(5,871
|
)
|
|
|
(5,033
|
)
|
|
|
(5,033
|
)
|
|
|
(5,033
|
)
|
Total Accumulated Other Comprehensive Loss
|
|
|
(5,851
|
)
|
|
|
(14,482
|
)
|
|
|
(23,277
|
)
|
|
|
(18,951
|
)
|
|
|
(16,519
|
)
|
Total Stockholders' Equity
|
|
|
619,241
|
|
|
|
600,764
|
|
|
|
512,026
|
|
|
|
503,754
|
|
|
|
491,877
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
4,917,608
|
|
|
$
|
4,899,012
|
|
|
$
|
4,420,802
|
|
|
$
|
4,374,383
|
|
|
$
|
4,200,015
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital
|
|
|
|
|
|
|
|
|
|
|
Total CET 1 capital
|
|
$
|
504,148
|
|
|
$
|
492,526
|
|
|
$
|
457,580
|
|
|
$
|
444,869
|
|
|
$
|
430,044
|
|
Total tier 1 capital
|
|
|
508,148
|
|
|
|
496,526
|
|
|
|
473,580
|
|
|
|
460,869
|
|
|
|
446,044
|
|
Total risk-based capital
|
|
|
523,053
|
|
|
|
512,801
|
|
|
|
490,307
|
|
|
|
478,255
|
|
|
|
464,936
|
|
Total risk-weighted assets
|
|
|
3,241,989
|
|
|
|
3,267,357
|
|
|
|
2,871,241
|
|
|
|
2,871,561
|
|
|
|
2,851,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Loan Portfolio
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate (1)
|
|
$
|
1,625,647
|
|
$
|
1,635,338
|
|
$
|
1,485,823
|
|
$
|
1,472,916
|
|
$
|
1,465,215
|
Home equity - junior liens
|
|
|
152,251
|
|
|
153,496
|
|
|
143,540
|
|
|
139,245
|
|
|
138,477
|
Commercial and industrial
|
|
|
289,327
|
|
|
286,314
|
|
|
213,815
|
|
|
213,687
|
|
|
204,592
|
Commercial real estate (2)
|
|
|
1,436,190
|
|
|
1,454,942
|
|
|
1,268,052
|
|
|
1,294,489
|
|
|
1,296,304
|
Consumer
|
|
|
52,483
|
|
|
51,190
|
|
|
31,869
|
|
|
31,137
|
|
|
29,570
|
DDA overdrafts
|
|
|
3,424
|
|
|
6,328
|
|
|
3,598
|
|
|
3,994
|
|
|
3,523
|
Gross Loans
|
|
$
|
3,559,322
|
|
$
|
3,587,608
|
|
$
|
3,146,697
|
|
$
|
3,155,468
|
|
$
|
3,137,681
|
|
|
|
|
|
|
|
|
|
|
|
Construction loans included in:
|
|
|
|
|
|
|
|
|
|
|
(1) - Residential real estate loans
|
|
$
|
22,635
|
|
$
|
21,834
|
|
$
|
17,628
|
|
$
|
21,662
|
|
$
|
26,610
|
(2) - Commercial real estate loans
|
|
|
56,282
|
|
|
37,869
|
|
|
24,110
|
|
|
28,567
|
|
|
30,857
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Asset Quality Information
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
15,966
|
|
|
$
|
16,311
|
|
|
$
|
16,876
|
|
|
$
|
18,381
|
|
|
$
|
18,836
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
(385
|
)
|
|
|
(339
|
)
|
Commercial real estate
|
|
|
(45
|
)
|
|
|
(20
|
)
|
|
|
(74
|
)
|
|
|
(118
|
)
|
|
|
(157
|
)
|
Residential real estate
|
|
|
(328
|
)
|
|
|
(218
|
)
|
|
|
(244
|
)
|
|
|
(96
|
)
|
|
|
(124
|
)
|
Home equity
|
|
|
(46
|
)
|
|
|
-
|
|
|
|
(108
|
)
|
|
|
(33
|
)
|
|
|
(78
|
)
|
Consumer
|
|
|
(185
|
)
|
|
|
(209
|
)
|
|
|
(206
|
)
|
|
|
(255
|
)
|
|
|
(99
|
)
|
DDA overdrafts
|
|
|
(625
|
)
|
|
|
(725
|
)
|
|
|
(704
|
)
|
|
|
(636
|
)
|
|
|
(636
|
)
|
Total charge-offs
|
|
|
(1,229
|
)
|
|
|
(1,181
|
)
|
|
|
(1,336
|
)
|
|
|
(1,523
|
)
|
|
|
(1,433
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
135
|
|
|
|
528
|
|
|
|
147
|
|
|
|
1,476
|
|
|
|
2
|
|
Commercial real estate
|
|
|
32
|
|
|
|
194
|
|
|
|
166
|
|
|
|
149
|
|
|
|
223
|
|
Residential real estate
|
|
|
75
|
|
|
|
92
|
|
|
|
116
|
|
|
|
53
|
|
|
|
106
|
|
Home equity
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Consumer
|
|
|
97
|
|
|
|
36
|
|
|
|
25
|
|
|
|
59
|
|
|
|
46
|
|
DDA overdrafts
|
|
|
419
|
|
|
|
386
|
|
|
|
344
|
|
|
|
345
|
|
|
|
420
|
|
Total recoveries
|
|
|
758
|
|
|
|
1,236
|
|
|
|
798
|
|
|
|
2,082
|
|
|
|
797
|
|
|
|
|
|
|
|
|
|
|
|
|
Net recoveries/(charge-offs)
|
|
|
(471
|
)
|
|
|
55
|
|
|
|
(538
|
)
|
|
|
559
|
|
|
|
(636
|
)
|
(Recovery of) provision for loan losses
|
|
|
(849
|
)
|
|
|
(400
|
)
|
|
|
(27
|
)
|
|
|
(2,064
|
)
|
|
|
181
|
|
Balance at end of period
|
|
$
|
14,646
|
|
|
$
|
15,966
|
|
|
$
|
16,311
|
|
|
$
|
16,876
|
|
|
$
|
18,381
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans outstanding
|
|
$
|
3,559,322
|
|
|
$
|
3,587,608
|
|
|
$
|
3,146,697
|
|
|
$
|
3,155,468
|
|
|
$
|
3,137,681
|
|
Allowance as a percent of loans outstanding
|
|
|
0.41
|
%
|
|
|
0.45
|
%
|
|
|
0.52
|
%
|
|
|
0.53
|
%
|
|
|
0.59
|
%
|
Allowance as a percent of non-performing loans
|
|
|
119.9
|
%
|
|
|
107.8
|
%
|
|
|
142.1
|
%
|
|
|
127.6
|
%
|
|
|
189.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average loans outstanding
|
|
$
|
3,576,984
|
|
|
$
|
3,252,939
|
|
|
$
|
3,149,320
|
|
|
$
|
3,138,146
|
|
|
$
|
3,133,804
|
|
Net (recoveries) charge-offs (annualized) as a percent of average
loans outstanding
|
|
|
0.05
|
%
|
|
|
-0.01
|
%
|
|
|
0.07
|
%
|
|
|
-0.07
|
%
|
|
|
0.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Asset Quality Information, continued
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
Nonaccrual Loans
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
3,263
|
|
|
$
|
4,275
|
|
|
$
|
3,029
|
|
|
$
|
3,783
|
|
|
$
|
3,331
|
|
Home equity
|
|
|
41
|
|
|
|
138
|
|
|
|
-
|
|
|
|
168
|
|
|
|
135
|
|
Commercial and industrial
|
|
|
1,526
|
|
|
|
1,676
|
|
|
|
818
|
|
|
|
863
|
|
|
|
1,063
|
|
Commercial real estate
|
|
|
7,282
|
|
|
|
8,461
|
|
|
|
7,599
|
|
|
|
7,707
|
|
|
|
5,061
|
|
Consumer
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
557
|
|
|
|
-
|
|
Total nonaccrual loans
|
|
|
12,113
|
|
|
|
14,551
|
|
|
|
11,447
|
|
|
|
13,078
|
|
|
|
9,590
|
|
Accruing loans past due 90 days or more
|
|
|
106
|
|
|
|
257
|
|
|
|
35
|
|
|
|
145
|
|
|
|
91
|
|
Total non-performing loans
|
|
|
12,219
|
|
|
|
14,808
|
|
|
|
11,482
|
|
|
|
13,223
|
|
|
|
9,681
|
|
Other real estate owned
|
|
|
3,186
|
|
|
|
4,608
|
|
|
|
4,259
|
|
|
|
3,636
|
|
|
|
3,912
|
|
Total non-performing assets
|
|
$
|
15,405
|
|
|
$
|
19,416
|
|
|
$
|
15,741
|
|
|
$
|
16,859
|
|
|
$
|
13,593
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a percent of loans and other real estate
owned
|
|
|
0.43
|
%
|
|
|
0.54
|
%
|
|
|
0.50
|
%
|
|
|
0.53
|
%
|
|
|
0.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Past Due Loans
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
7,972
|
|
|
$
|
9,991
|
|
|
$
|
4,657
|
|
|
$
|
5,998
|
|
|
$
|
5,641
|
|
Home equity
|
|
|
720
|
|
|
|
1,275
|
|
|
|
468
|
|
|
|
583
|
|
|
|
616
|
|
Commercial and industrial
|
|
|
101
|
|
|
|
497
|
|
|
|
187
|
|
|
|
624
|
|
|
|
61
|
|
Commercial real estate
|
|
|
1,414
|
|
|
|
585
|
|
|
|
934
|
|
|
|
402
|
|
|
|
1,520
|
|
Consumer
|
|
|
264
|
|
|
|
295
|
|
|
|
39
|
|
|
|
34
|
|
|
|
21
|
|
DDA overdrafts
|
|
|
535
|
|
|
|
488
|
|
|
|
582
|
|
|
|
525
|
|
|
|
432
|
|
Total past due loans
|
|
$
|
11,006
|
|
|
$
|
13,131
|
|
|
$
|
6,867
|
|
|
$
|
8,166
|
|
|
$
|
8,291
|
|
|
|
|
|
|
|
|
|
|
|
|
Total past due loans as a percent of loans outstanding
|
|
|
0.31
|
%
|
|
|
0.37
|
%
|
|
|
0.22
|
%
|
|
|
0.26
|
%
|
|
|
0.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Troubled Debt Restructurings ("TDRs")
|
|
|
|
|
|
|
|
|
|
|
Accruing:
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
23,017
|
|
|
$
|
22,863
|
|
|
$
|
20,414
|
|
|
$
|
20,424
|
|
|
$
|
20,786
|
|
Home equity
|
|
|
3,013
|
|
|
|
3,025
|
|
|
|
2,941
|
|
|
|
3,156
|
|
|
|
3,015
|
|
Commercial and industrial
|
|
|
89
|
|
|
|
98
|
|
|
|
108
|
|
|
|
119
|
|
|
|
125
|
|
Commercial real estate
|
|
|
8,164
|
|
|
|
8,205
|
|
|
|
8,231
|
|
|
|
8,279
|
|
|
|
8,324
|
|
Consumer
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total accruing TDRs
|
|
$
|
34,283
|
|
|
$
|
34,191
|
|
|
$
|
31,694
|
|
|
$
|
31,978
|
|
|
$
|
32,250
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accruing
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
$
|
464
|
|
|
$
|
658
|
|
|
$
|
175
|
|
|
$
|
307
|
|
|
$
|
256
|
|
Home equity
|
|
|
5
|
|
|
|
5
|
|
|
|
-
|
|
|
|
40
|
|
|
|
40
|
|
Commercial and industrial
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Commercial real estate
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Consumer
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total non-accruing TDRs
|
|
$
|
469
|
|
|
$
|
663
|
|
|
$
|
175
|
|
|
$
|
347
|
|
|
$
|
296
|
|
|
|
|
|
|
|
|
|
|
|
|
Total TDRs
|
|
$
|
34,752
|
|
|
$
|
34,854
|
|
|
$
|
31,869
|
|
|
$
|
32,325
|
|
|
$
|
32,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Consolidated Average Balance Sheets, Yields, and Rates
|
(Unaudited) ($ in 000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate (2)
|
|
$
|
1,806,233
|
|
|
$
|
20,451
|
|
|
4.59
|
%
|
|
$
|
1,683,388
|
|
|
$
|
18,681
|
|
4.40
|
%
|
|
$
|
1,603,911
|
|
|
$
|
16,479
|
|
4.17
|
%
|
Commercial, financial, and agriculture (2)
|
|
|
1,715,524
|
|
|
|
20,845
|
|
|
4.93
|
%
|
|
|
1,526,658
|
|
|
|
18,335
|
|
4.76
|
%
|
|
|
1,496,817
|
|
|
|
15,608
|
|
4.23
|
%
|
Installment loans to individuals (2), (3)
|
|
|
55,227
|
|
|
|
840
|
|
|
6.17
|
%
|
|
|
42,893
|
|
|
|
745
|
|
6.89
|
%
|
|
|
33,076
|
|
|
|
504
|
|
6.18
|
%
|
Previously securitized loans (4)
|
|
***
|
|
|
|
144
|
|
|
***
|
|
|
***
|
|
|
|
212
|
|
***
|
|
|
***
|
|
|
|
327
|
|
***
|
|
Total loans
|
|
|
3,576,984
|
|
|
|
42,280
|
|
|
4.79
|
%
|
|
|
3,252,939
|
|
|
|
37,973
|
|
4.63
|
%
|
|
|
3,133,804
|
|
|
|
32,918
|
|
4.26
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
714,413
|
|
|
|
5,689
|
|
|
3.23
|
%
|
|
|
602,966
|
|
|
|
5,023
|
|
3.31
|
%
|
|
|
536,714
|
|
|
|
3,981
|
|
3.01
|
%
|
Tax-exempt (5)
|
|
|
102,375
|
|
|
|
986
|
|
|
3.91
|
%
|
|
|
92,833
|
|
|
|
922
|
|
3.94
|
%
|
|
|
91,722
|
|
|
|
890
|
|
3.94
|
%
|
Total securities
|
|
|
816,788
|
|
|
|
6,675
|
|
|
3.31
|
%
|
|
|
695,799
|
|
|
|
5,945
|
|
3.39
|
%
|
|
|
628,436
|
|
|
|
4,871
|
|
3.14
|
%
|
Deposits in depository institutions
|
|
|
72,723
|
|
|
|
186
|
|
|
1.04
|
%
|
|
|
141,246
|
|
|
|
623
|
|
1.75
|
%
|
|
|
29,648
|
|
|
|
42
|
|
0.57
|
%
|
Total interest-earning assets
|
|
|
4,466,495
|
|
|
|
49,141
|
|
|
4.46
|
%
|
|
|
4,089,984
|
|
|
|
44,541
|
|
4.32
|
%
|
|
|
3,791,888
|
|
|
|
37,831
|
|
4.05
|
%
|
Cash and due from banks
|
|
|
52,561
|
|
|
|
|
|
|
|
|
54,367
|
|
|
|
|
|
|
|
|
71,480
|
|
|
|
|
|
|
Premises and equipment, net
|
|
|
78,220
|
|
|
|
|
|
|
|
|
74,430
|
|
|
|
|
|
|
|
|
72,716
|
|
|
|
|
|
|
Goodwill and intangible assets
|
|
|
122,605
|
|
|
|
|
|
|
|
|
93,090
|
|
|
|
|
|
|
|
|
78,547
|
|
|
|
|
|
|
Other assets
|
|
|
195,954
|
|
|
|
|
|
|
|
|
181,249
|
|
|
|
|
|
|
|
|
167,174
|
|
|
|
|
|
|
Less: Allowance for loan losses
|
|
|
(16,182
|
)
|
|
|
|
|
|
|
|
(16,780
|
)
|
|
|
|
|
|
|
|
(19,420
|
)
|
|
|
|
|
|
Total assets
|
|
$
|
4,899,653
|
|
|
|
|
|
|
|
$
|
4,476,340
|
|
|
|
|
|
|
|
$
|
4,162,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
|
886,833
|
|
|
$
|
933
|
|
|
0.43
|
%
|
|
$
|
822,087
|
|
|
$
|
787
|
|
0.38
|
%
|
|
$
|
782,499
|
|
|
$
|
357
|
|
0.19
|
%
|
Savings deposits
|
|
|
947,337
|
|
|
|
1,066
|
|
|
0.46
|
%
|
|
|
846,162
|
|
|
|
802
|
|
0.38
|
%
|
|
|
801,504
|
|
|
|
341
|
|
0.17
|
%
|
Time deposits (2)
|
|
|
1,368,465
|
|
|
|
5,768
|
|
|
1.71
|
%
|
|
|
1,208,415
|
|
|
|
5,067
|
|
1.66
|
%
|
|
|
1,096,157
|
|
|
|
3,628
|
|
1.34
|
%
|
Short-term borrowings
|
|
|
237,616
|
|
|
|
1,052
|
|
|
1.80
|
%
|
|
|
263,022
|
|
|
|
1,060
|
|
1.60
|
%
|
|
|
236,605
|
|
|
|
460
|
|
0.79
|
%
|
Long-term debt
|
|
|
4,053
|
|
|
|
48
|
|
|
4.80
|
%
|
|
|
14,743
|
|
|
|
200
|
|
5.38
|
%
|
|
|
16,495
|
|
|
|
211
|
|
5.19
|
%
|
Total interest-bearing liabilities
|
|
|
3,444,304
|
|
|
|
8,867
|
|
|
1.04
|
%
|
|
|
3,154,429
|
|
|
|
7,916
|
|
1.00
|
%
|
|
|
2,933,260
|
|
|
|
4,997
|
|
0.69
|
%
|
Noninterest-bearing demand deposits
|
|
|
788,109
|
|
|
|
|
|
|
|
|
734,066
|
|
|
|
|
|
|
|
|
681,150
|
|
|
|
|
|
|
Other liabilities
|
|
|
55,372
|
|
|
|
|
|
|
|
|
48,553
|
|
|
|
|
|
|
|
|
46,426
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
611,868
|
|
|
|
|
|
|
|
|
539,292
|
|
|
|
|
|
|
|
|
501,549
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
4,899,653
|
|
|
|
|
|
|
|
$
|
4,476,340
|
|
|
|
|
|
|
|
$
|
4,162,385
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
$
|
40,274
|
|
|
|
|
|
|
|
|
$
|
36,625
|
|
|
|
|
|
|
|
$
|
32,834
|
|
|
|
Net yield on earning assets
|
|
|
|
|
|
|
3.66
|
%
|
|
|
|
|
|
|
3.55
|
%
|
|
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For purposes of this table, non-accruing loans have
been included in average balances and the following amounts (in
thousands) of loan fees have been included in interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan fees
|
|
|
|
|
$
|
96
|
|
|
|
|
|
|
|
|
$
|
221
|
|
|
|
|
|
|
|
$
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
$
|
32
|
|
|
|
|
|
|
|
|
$
|
57
|
|
|
|
|
|
|
|
$
|
110
|
|
|
|
Commercial, financial, and agriculture
|
|
|
|
|
|
190
|
|
|
|
|
|
|
|
|
|
449
|
|
|
|
|
|
|
|
|
150
|
|
|
|
Installment loans to individuals
|
|
|
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
10
|
|
|
|
Time deposits
|
|
|
|
|
|
(256
|
)
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
$
|
472
|
|
|
|
|
|
|
|
|
$
|
508
|
|
|
|
|
|
|
|
$
|
270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes the Company’s consumer and DDA overdrafts loan
categories.
|
(4) Effective January 1, 2012, the carrying value of the Company's
previously securitized loans was reduced to $0.
|
(5) Computed on a fully federal tax-equivalent basis assuming a tax
rate of approximately 21%.
|
|
|
CITY HOLDING COMPANY AND SUBSIDIARIES
|
Non-GAAP Reconciliations
|
(Unaudited) ($ in 000s, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
Net Interest Income/Margin
|
|
|
|
|
|
|
|
|
|
|
Net interest income ("GAAP")
|
|
$
|
40,066
|
|
|
$
|
36,431
|
|
|
$
|
35,558
|
|
|
$
|
33,573
|
|
|
$
|
32,647
|
|
Taxable equivalent adjustment
|
|
|
208
|
|
|
|
194
|
|
|
|
187
|
|
|
|
187
|
|
|
|
187
|
|
Net interest income, fully taxable equivalent
|
|
$
|
40,274
|
|
|
$
|
36,625
|
|
|
$
|
35,745
|
|
|
$
|
33,760
|
|
|
$
|
32,834
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest earning assets
|
|
$
|
4,466,495
|
|
|
$
|
4,089,984
|
|
|
$
|
4,005,067
|
|
|
$
|
3,800,435
|
|
|
$
|
3,791,888
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
|
|
|
3.66
|
%
|
|
|
3.55
|
%
|
|
|
3.54
|
%
|
|
|
3.56
|
%
|
|
|
3.51
|
%
|
Accretion related to fair value adjustments
|
|
|
-0.05
|
%
|
|
|
-0.05
|
%
|
|
|
-0.03
|
%
|
|
|
-0.04
|
%
|
|
|
-0.03
|
%
|
Net Interest Margin (excluding accretion)
|
|
|
3.61
|
%
|
|
|
3.50
|
%
|
|
|
3.51
|
%
|
|
|
3.52
|
%
|
|
|
3.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity Ratio (period end)
|
|
|
|
|
|
|
|
|
|
|
Equity to assets ("GAAP")
|
|
|
12.59
|
%
|
|
|
12.26
|
%
|
|
|
11.58
|
%
|
|
|
11.52
|
%
|
|
|
11.71
|
%
|
Effect of goodwill and other intangibles, net
|
|
|
-2.22
|
%
|
|
|
-2.26
|
%
|
|
|
-1.59
|
%
|
|
|
-1.61
|
%
|
|
|
-1.68
|
%
|
Tangible common equity to tangible assets
|
|
|
10.37
|
%
|
|
|
10.01
|
%
|
|
|
9.99
|
%
|
|
|
9.90
|
%
|
|
|
10.03
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Return on tangible equity ("GAAP")
|
|
|
17.67
|
%
|
|
|
9.60
|
%
|
|
|
18.92
|
%
|
|
|
19.94
|
%
|
|
|
16.66
|
%
|
Impact of merger related expenses
|
|
|
0.16
|
%
|
|
|
9.23
|
%
|
|
|
0.29
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Return on tangible equity, excluding merger related expenses
|
|
|
17.84
|
%
|
|
|
18.83
|
%
|
|
|
19.21
|
%
|
|
|
19.94
|
%
|
|
|
16.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Return on assets ("GAAP")
|
|
|
1.76
|
%
|
|
|
0.96
|
%
|
|
|
1.90
|
%
|
|
|
2.00
|
%
|
|
|
1.69
|
%
|
Impact of merger related expenses
|
|
|
0.02
|
%
|
|
|
0.92
|
%
|
|
|
0.02
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Return on Assets, excluding merger related expenses
|
|
|
1.78
|
%
|
|
|
1.88
|
%
|
|
|
1.92
|
%
|
|
|
2.00
|
%
|
|
|
1.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Effective Income Tax Rate
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate ("GAAP")
|
|
|
21.2
|
%
|
|
|
19.8
|
%
|
|
|
21.3
|
%
|
|
|
20.3
|
%
|
|
|
20.0
|
%
|
Impact of FIN 48 adjustments
|
|
|
0.00
|
%
|
|
|
2.97
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
Effective tax rate, excluding FIN 48 adjustments
|
|
|
21.2
|
%
|
|
|
22.8
|
%
|
|
|
21.3
|
%
|
|
|
20.3
|
%
|
|
|
20.0
|
%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190417005115/en/
Copyright Business Wire 2019