West Virginia | 55-0619957 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
25 Gatewater Road | ||||||||
Charleston | West Virginia | 25313 | ||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class: | Trading Symbol (s) | Name of Each Exchange on Which Registered: | ||||||
Common Stock, $2.50 par value | CHCO | NASDAQ Global Select Market |
Yes | [X] | No | [ ] |
Yes | [ ] | No | [X] |
Yes | [X] | No | [ ] |
Yes | [X] | No | [ ] |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Yes | ☐ | No | ☒ |
December 31, 2021 | Actual | Minimum Required - Basel III | Required to be Considered Well Capitalized | ||||||||||||||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||||||||||||||||
CET 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | $ | 555,532 | 16.1 | % | $ | 241,772 | 7.0 | % | $ | 224,503 | 6.5 | % | |||||||||||||||||||||||
City National Bank | 492,721 | 14.4 | % | 240,392 | 7.0 | % | 223,221 | 6.5 | % | ||||||||||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 555,532 | 16.1 | % | 293,581 | 8.5 | % | 276,311 | 8.0 | % | ||||||||||||||||||||||||||
City National Bank | 492,721 | 14.4 | % | 291,905 | 8.5 | % | 274,734 | 8.0 | % | ||||||||||||||||||||||||||
Total Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 570,336 | 16.5 | % | 362,659 | 10.5 | % | 345,389 | 10.0 | % | ||||||||||||||||||||||||||
City National Bank | 507,526 | 14.8 | % | 360,588 | 10.5 | % | 343,418 | 10.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage Ratio | |||||||||||||||||||||||||||||||||||
City Holding Company | 555,532 | 9.4 | % | 235,403 | 4.0 | % | 294,254 | 5.0 | % | ||||||||||||||||||||||||||
City National Bank | 492,721 | 8.5 | % | 233,342 | 4.0 | % | 291,678 | 5.0 | % |
December 31, 2020 | Actual | Minimum Required - Basel III | Required to be Considered Well Capitalized | ||||||||||||||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||||||||||||||||
CET 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | $ | 557,641 | 16.2 | % | $ | 241,221 | 7.0 | % | $ | 223,991 | 6.5 | % | |||||||||||||||||||||||
City National Bank | 482,754 | 14.1 | % | 239,569 | 7.0 | % | 222,457 | 6.5 | % | ||||||||||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 557,641 | 16.2 | % | 292,911 | 8.5 | % | 275,681 | 8.0 | % | ||||||||||||||||||||||||||
City National Bank | 482,754 | 14.1 | % | 290,906 | 8.5 | % | 273,793 | 8.0 | % | ||||||||||||||||||||||||||
Total Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 577,292 | 16.8 | % | 361,831 | 10.5 | % | 344,601 | 10.0 | % | ||||||||||||||||||||||||||
City National Bank | 502,405 | 14.7 | % | 359,354 | 10.5 | % | 342,242 | 10.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage Ratio | |||||||||||||||||||||||||||||||||||
City Holding Company | 557,641 | 10.2 | % | 218,163 | 4.0 | % | 272,704 | 5.0 | % | ||||||||||||||||||||||||||
City National Bank | 482,754 | 9.0 | % | 215,277 | 4.0 | % | 269,097 | 5.0 | % |
For the year ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
FDIC insurance expense | $ | 1,583 | $ | 884 | $ | 638 |
Name | Age | Positions Held with Registrant | ||||||
Charles R. Hageboeck, Ph.D. | 59 | President and Chief Executive Officer, City Holding Company and City National Bank, since February 1, 2005. | ||||||
John A. DeRito | 71 | Executive Vice President of Commercial Banking, City Holding Company and City National Bank, since June 2004. | ||||||
David L. Bumgarner | 56 | Executive Vice President and Chief Financial Officer, City Holding Company and City National Bank, since February 2005. | ||||||
Michael T. Quinlan, Jr. | 53 | Executive Vice President of Retail Banking, City Holding Company and City National Bank, since January 2021. | ||||||
Jeffrey D. Legge | 57 | Executive Vice President, Chief Administration Officer and Chief Information Officer, City Holding Company and City National Bank, since December 2005. |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||
City Holding Company | $100.00 | $102.46 | $105.38 | $131.54 | $115.53 | $140.12 | ||||||||||||||
NASDAQ Composite Index | $100.00 | $129.64 | $125.96 | $172.18 | $249.51 | $304.85 | ||||||||||||||
KBW Nasdaq Bank Index | $100.00 | $100.76 | $88.87 | $109.39 | $91.82 | $124.18 |
Description of Information | Page Reference | |||||||||||||
Item I. | Distribution of Assets, Liabilities and Stockholders' | |||||||||||||
Equity; Interest Rates and Interest Differential | ||||||||||||||
a. | Average Balance Sheets | |||||||||||||
b. | Analysis of Net Interest Earnings | |||||||||||||
c. | Rate Volume Analysis of Changes in Interest Income and Expense | |||||||||||||
II. | Investment Portfolio | |||||||||||||
a. | Maturity Schedule of Investments | |||||||||||||
III. | Loan Portfolio | |||||||||||||
a. | Types of Loans | |||||||||||||
b. | Maturities and Sensitivity to Changes in Interest Rates | |||||||||||||
c. | Other Interest Bearing Assets | None | ||||||||||||
d. | Risk Elements | |||||||||||||
V. | Deposits | |||||||||||||
a. | Breakdown of Deposits by Categories, Average Balance and Average Rate Paid | |||||||||||||
b. | Maturity Schedule of Uninsured Time Certificates of Deposit | |||||||||||||
VI. | Return on Equity and Assets | |||||||||||||
VII. | Short-term Borrowings |
Portfolio Segment | Measurement Method | ||||
Commercial and industrial | Migration | ||||
Commercial real estate: | |||||
1-4 family | Migration | ||||
Hotels | Migration | ||||
Multi-family | Migration | ||||
Non Residential Non-Owner Occupied | Migration | ||||
Non Residential Owner Occupied | Migration | ||||
Residential real estate | Vintage | ||||
Home equity | Vintage | ||||
Consumer | Vintage |
2021 | 2020 | 2019 | |||||||||
Net income available to common shareholders (in thousands) | $ | 88,080 | $ | 89,595 | $ | 89,352 | |||||
Earnings per common share, basic | $ | 5.67 | $ | 5.55 | $ | 5.43 | |||||
Earnings per common share, diluted | $ | 5.66 | $ | 5.55 | $ | 5.42 | |||||
Cash dividends declared | $ | 2.34 | $ | 2.29 | $ | 2.20 | |||||
Book value per share | $ | 45.22 | $ | 44.47 | $ | 40.36 | |||||
Dividend payout ratio | 41.3 | % | 41.2 | % | 40.5 | % | |||||
ROA* | 1.49 | % | 1.66 | % | 1.80 | % | |||||
ROE* | 12.7 | % | 12.9 | % | 14.0 | % | |||||
ROATCE* | 15.3 | % | 15.6 | % | 17.3 | % |
December 31, | ||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||
Investment securities | 1,433.7 | 1,206.2 | 227.5 | 19 | % | |||||||||
Gross loans | 3,543.8 | 3,622.1 | (78.3) | (2) | % | |||||||||
Total deposits | 4,925.3 | 4,652.2 | 273.1 | 6 | % | |||||||||
Tangible equity to tangible assets | 9.58 | % | 10.33 | % |
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Loan portfolio(1): | |||||||||||||||||||||||||||||||||||
Residential real estate(2),(3) | $ | 1,658,710 | $ | 64,492 | 3.89 | % | $ | 1,768,789 | $ | 74,452 | 4.21 | % | $ | 1,791,636 | $ | 81,603 | 4.55 | % | |||||||||||||||||
Commercial, financial, and agriculture(3) | 1,838,560 | 68,784 | 3.74 | 1,816,658 | 72,128 | 3.97 | 1,717,381 | 84,167 | 4.90 | ||||||||||||||||||||||||||
Installment loans to individuals(3),(4) | 48,708 | 2,831 | 5.81 | 56,163 | 3,319 | 5.91 | 58,126 | 3,559 | 6.12 | ||||||||||||||||||||||||||
Previously securitized loans(5) | — | 568 | — | — | 599 | — | — | 684 | — | ||||||||||||||||||||||||||
Total loans | 3,545,978 | 136,675 | 3.85 | 3,641,610 | 150,498 | 4.13 | 3,567,143 | 170,013 | 4.77 | ||||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||
Taxable | 1,075,550 | 23,071 | 2.15 | 890,771 | 23,355 | 2.62 | 761,358 | 23,389 | 3.07 | ||||||||||||||||||||||||||
Tax-exempt(6) | 242,125 | 6,362 | 2.63 | 164,740 | 4,954 | 3.01 | 98,217 | 3,756 | 3.82 | ||||||||||||||||||||||||||
Total securities | 1,317,675 | 29,433 | 2.23 | 1,055,511 | 28,309 | 2.68 | 859,575 | 27,145 | 3.16 | ||||||||||||||||||||||||||
Deposits in depository institutions | 568,928 | 693 | 0.12 | 230,043 | 492 | 0.21 | 84,826 | 1,332 | 1.57 | ||||||||||||||||||||||||||
Total interest-earning assets | 5,432,581 | 166,801 | 3.07 | 4,927,164 | 179,299 | 3.64 | 4,511,544 | 198,490 | 4.40 | ||||||||||||||||||||||||||
Cash and due from banks | 92,847 | 76,173 | 65,664 | ||||||||||||||||||||||||||||||||
Bank premises and equipment | 76,069 | 77,670 | 78,103 | ||||||||||||||||||||||||||||||||
Goodwill and intangible assets | 117,899 | 119,471 | 121,460 | ||||||||||||||||||||||||||||||||
Other assets | 216,493 | 221,864 | 191,422 | ||||||||||||||||||||||||||||||||
Less: allowance for credit losses | (21,922) | (22,770) | (14,466) | ||||||||||||||||||||||||||||||||
Total assets | $ | 5,913,967 | $ | 5,399,572 | $ | 4,953,727 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,071,628 | 504 | 0.05 | % | $ | 912,306 | 1,005 | 0.11 | % | $ | 878,716 | 3,490 | 0.40 | % | ||||||||||||||||||||
Savings deposits | 1,291,225 | 689 | 0.05 | 1,071,727 | 1,591 | 0.15 | 977,327 | 4,405 | 0.45 | ||||||||||||||||||||||||||
Time deposits(3) | 1,157,502 | 8,213 | 0.71 | 1,329,841 | 19,927 | 1.50 | 1,368,752 | 24,771 | 1.81 | ||||||||||||||||||||||||||
Short-term borrowings | 298,413 | 489 | 0.16 | 253,456 | 993 | 0.39 | 211,452 | 3,491 | 1.65 | ||||||||||||||||||||||||||
Long-term debt | — | — | — | 830 | 100 | 12.05 | 4,054 | 182 | 4.49 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 3,818,768 | 9,895 | 0.26 | 3,568,160 | 23,616 | 0.66 | 3,440,301 | 36,339 | 1.06 | ||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,315,801 | 1,035,801 | 818,161 | ||||||||||||||||||||||||||||||||
Other liabilities | 84,377 | 100,166 | 57,350 | ||||||||||||||||||||||||||||||||
Total shareholders’ equity | 695,021 | 695,445 | 637,915 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,913,967 | $ | 5,399,572 | $ | 4,953,727 | |||||||||||||||||||||||||||||
Net interest income | $ | 156,906 | $ | 155,683 | $ | 162,151 | |||||||||||||||||||||||||||||
Net yield on earning assets | 2.89 | % | 3.16 | % | 3.59 | % |
2021 | 2020 | 2019 | |||||||||
Loan fees, net | $ | 3,550 | $ | 1,842 | $ | 863 |
2021 | 2020 | 2019 | |||||||||
Residential real estate | $ | 620 | $ | 630 | $ | 323 | |||||
Commercial, financial, and agriculture | 1,198 | 2,445 | 2,366 | ||||||||
Installment loans to individuals | 87 | 143 | 47 | ||||||||
Time deposits | 193 | 622 | 843 | ||||||||
Total | $ | 2,098 | $ | 3,840 | $ | 3,579 |
2021 | 2020 | 2019 |
Total interest income | $ | 165,467 | $ | 178,259 | $ | 197,700 | |||||||||||
Total interest expense | 9,894 | 23,615 | 36,339 | ||||||||||||||
Net interest income | 155,573 | 154,644 | 161,361 |
2021 vs. 2020 Increase (Decrease) Due to Change In: | 2020 vs. 2019 Increase (Decrease) Due to Change In: | |||||||||||||||||||
Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loan portfolio | ||||||||||||||||||||
Residential real estate | $ | (4,633) | $ | (5,327) | $ | (9,960) | $ | (1,041) | $ | (6,110) | $ | (7,151) | ||||||||
Commercial, financial, and agriculture | 870 | (4,214) | (3,344) | 4,865 | (16,904) | (12,039) | ||||||||||||||
Installment loans to individuals | (441) | (47) | (488) | (120) | (120) | (240) | ||||||||||||||
Previously securitized loans | — | (31) | (31) | — | (85) | (85) | ||||||||||||||
Total loans | (4,204) | (9,619) | (13,823) | 3,704 | (23,219) | (19,515) | ||||||||||||||
Securities: | ||||||||||||||||||||
Taxable | 4,845 | (5,129) | (284) | 3,976 | (4,010) | (34) | ||||||||||||||
Tax-exempt(1) | 2,327 | (919) | 1,408 | 2,544 | (1,346) | 1,198 | ||||||||||||||
Total securities | 7,172 | (6,048) | 1,124 | 6,520 | (5,356) | 1,164 | ||||||||||||||
Deposits in depository institutions | 725 | (524) | 201 | 2,280 | (3,120) | (840) | ||||||||||||||
Total interest-earning assets | $ | 3,693 | $ | (16,191) | $ | (12,498) | $ | 12,504 | $ | (31,695) | $ | (19,191) | ||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing demand deposits | $ | 176 | $ | (677) | $ | (501) | $ | 133 | $ | (2,618) | $ | (2,485) | ||||||||
Savings deposits | 326 | (1,228) | (902) | 425 | (3,239) | (2,814) | ||||||||||||||
Time deposits | (2,582) | (9,132) | (11,714) | (704) | (4,140) | (4,844) | ||||||||||||||
Short-term borrowings | 176 | (680) | (504) | 693 | (3,191) | (2,498) | ||||||||||||||
Long-term debt | (100) | — | (100) | (145) | 63 | (82) | ||||||||||||||
Total interest-bearing liabilities | (2,004) | (11,717) | (13,721) | 402 | (13,125) | (12,723) | ||||||||||||||
Net Interest Income | $ | 5,697 | $ | (4,474) | $ | 1,223 | $ | 12,102 | $ | (18,570) | $ | (6,468) |
2021 | 2020 | 2019 | |||||||||
Net interest income ("GAAP") | $ | 155,573 | $ | 154,644 | $ | 161,361 | |||||
Taxable equivalent adjustment | 1,333 | 1,039 | 790 | ||||||||
Net interest income, fully taxable equivalent | $ | 156,906 | $ | 155,683 | $ | 162,151 | |||||
Average total interest earning assets | $ | 5,432,581 | $ | 4,927,164 | $ | 4,511,544 | |||||
Net interest margin | 2.89 | % | 3.16 | % | 3.59 | % | |||||
Accretion related to fair value adjustments | (0.04) | (0.08) | (0.08) | ||||||||
Net interest margin (excluding accretion) | 2.85 | % | 3.08 | % | 3.51 | % | |||||
Equity to assets ("GAAP") | 11.34 | % | 12.18 | % | 13.11 | % | |||||
Effect of goodwill and other intangibles, net | (1.76) | (1.85) | (2.13) | ||||||||
Tangible common equity to tangible assets | 9.58 | % | 10.33 | % | 10.98 | % | |||||
Return on tangible equity ("GAAP") | 15.3 | % | 15.6 | % | 17.3 | % | |||||
Impact of sale of VISA shares | — | (2.4) | — | ||||||||
Impact of merger related expenses | — | — | 0.1 | ||||||||
Return on tangible equity, excluding the above items | 15.3 | % | 13.2 | % | 17.4 | % | |||||
Return on assets ("GAAP") | 1.49 | % | 1.66 | % | 1.80 | % | |||||
Impact of sale of VISA shares | — | (0.24) | — | ||||||||
Impact of merger related expenses | — | — | 0.02 | ||||||||
Return on assets, excluding the above items | 1.49 | % | 1.42 | % | 1.82 | % | |||||
For the year ended December 31, | ||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||
Unrealized gains (losses) recognized on equity securities still held | $ | 0.5 | $ | (0.9) | $ | 1.4 | 156 | % | ||||||
Sale of VISA shares | — | 17.8 | (17.8) | (100) | % | |||||||||
Non-interest income, excluding net investment securities (losses) gains and sale of VISA shares | 68.8 | 65.6 | 3.2 | 5 | % | |||||||||
Non-interest expense | 117.2 | 115.3 | 1.9 | 2 | % | |||||||||
Efficiency ratio | 51.3 | 51.3 | ||||||||||||
Full-time equivalent employees | 905 | 926 |
For the year ended December 31, | ||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||
Unrealized gains (losses) recognized on equity securities still held | $ | (0.9) | $ | 0.9 | $ | (1.8) | (200) | % | ||||||
Sale of VISA shares | 17.8 | — | 17.8 | 100 | % | |||||||||
Non-interest income, excluding net investment securities (losses) gains and sale of VISA shares | 65.6 | 67.5 | (1.9) | (3) | % | |||||||||
Merger related expenses | — | 0.8 | (0.8) | (100) | % | |||||||||
Non-interest expense, excluding merger related expenses | 115.3 | 116.8 | (1.5) | (1) | % |
For the year ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Income tax expense | $ | 23.1 | $ | 21.7 | $ | 24.1 | |||||
Effective tax rate | 20.8 | % | 19.5 | % | 21.3 | % |
December 31, 2021 | Actual | Minimum Required - Basel III | Required to be Considered Well Capitalized | ||||||||||||||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||||||||||||||||
CET 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | $ | 555,532 | 16.1 | % | $ | 241,772 | 7.0 | % | $ | 224,503 | 6.5 | % | |||||||||||||||||||||||
City National Bank | 492,721 | 14.4 | % | 240,392 | 7.0 | % | 223,221 | 6.5 | % | ||||||||||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 555,532 | 16.1 | % | 293,581 | 8.5 | % | 276,311 | 8.0 | % | ||||||||||||||||||||||||||
City National Bank | 492,721 | 14.4 | % | 291,905 | 8.5 | % | 274,734 | 8.0 | % | ||||||||||||||||||||||||||
Total Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 570,336 | 16.5 | % | 362,659 | 10.5 | % | 345,389 | 10.0 | % | ||||||||||||||||||||||||||
City National Bank | 507,526 | 14.8 | % | 360,588 | 10.5 | % | 343,418 | 10.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage Ratio | |||||||||||||||||||||||||||||||||||
City Holding Company | 555,532 | 9.4 | % | 235,403 | 4.0 | % | 294,254 | 5.0 | % | ||||||||||||||||||||||||||
City National Bank | 492,721 | 8.5 | % | 233,342 | 4.0 | % | 291,678 | 5.0 | % |
December 31, 2020: | Actual | Minimum Required - Basel III | Required to be Considered Well Capitalized | ||||||||||||||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||||||||||||||||
CET 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | $ | 557,641 | 16.2 | % | $ | 241,221 | 7.0 | % | $ | 223,991 | 6.5 | % | |||||||||||||||||||||||
City National Bank | 482,754 | 14.1 | % | 239,569 | 7.0 | % | 222,457 | 6.5 | % | ||||||||||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 557,641 | 16.2 | % | 292,911 | 8.5 | % | 275,681 | 8.0 | % | ||||||||||||||||||||||||||
City National Bank | 482,754 | 14.1 | % | 290,906 | 8.5 | % | 273,793 | 8.0 | % | ||||||||||||||||||||||||||
Total Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 577,292 | 16.8 | % | 361,831 | 10.5 | % | 344,601 | 10.0 | % | ||||||||||||||||||||||||||
City National Bank | 502,405 | 14.7 | % | 359,354 | 10.5 | % | 342,242 | 10.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage Ratio | |||||||||||||||||||||||||||||||||||
City Holding Company | 557,641 | 10.2 | % | 218,163 | 4.0 | % | 272,704 | 5.0 | % | ||||||||||||||||||||||||||
City National Bank | 482,754 | 9.0 | % | 215,277 | 4.0 | % | 269,097 | 5.0 | % |
Contractual Maturity in | |||||||||||
Less than One Year | Greater than One Year | Total | |||||||||
Noninterest-bearing demand deposits | $ | 1,373,125 | $ | — | $ | 1,373,125 | |||||
Interest-bearing demand deposits(1) | 1,135,852 | — | 1,135,852 | ||||||||
Savings deposits(1) | 1,347,455 | — | 1,347,455 | ||||||||
Time deposits(1) | 872,474 | 197,545 | 1,070,019 | ||||||||
Short-term borrowings(1) | 312,962 | — | 312,962 | ||||||||
Low income housing tax credits ("LIHTCs") funding commitments | 5,719 | 13,299 | 19,018 | ||||||||
Supplemental employee retirement plans | 861 | 6,439 | 7,300 | ||||||||
Deferred compensation plans | — | 2,777 | 2,777 | ||||||||
Real estate leases | 980 | 5,722 | 6,702 | ||||||||
Total Contractual Obligations | $ | 5,049,428 | $ | 225,782 | $ | 5,275,210 |
Within | After One But | After Five But | After | |||||||||||||||||||||||
One Year | Within Five Years | Within Ten Years | Ten Years | |||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,910 | 3.97 | % | $ | 21,701 | 2.91 | % | $ | 31,580 | 2.81 | % | $ | 216,025 | 2.07 | % | ||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
U.S. government agencies | 179 | 2.56 | 10,348 | 2.38 | 231,770 | 2.30 | 852,014 | 1.73 | ||||||||||||||||||
Private label | — | — | — | — | — | — | 9,108 | 3.90 | ||||||||||||||||||
Trust preferred securities | — | — | — | — | — | — | 4,203 | 1.57 | ||||||||||||||||||
Corporate securities | — | — | 11,698 | 4.92 | 16,137 | 2.82 | 492 | 3.60 | ||||||||||||||||||
Total Debt Securities available-for-sale | 3,089 | 3.89 | 43,747 | 3.32 | 279,487 | 2.39 | 1,081,842 | 1.82 |
2021 | 2020 | |||||||
Commercial and industrial | $ | 346,184 | $ | 372,989 | ||||
1-4 Family | 107,873 | 109,812 | ||||||
Hotels | 311,315 | 294,464 | ||||||
Multi-family | 215,677 | 215,671 | ||||||
Non Residential Non-Owner Occupied | 639,818 | 641,351 | ||||||
Non Residential Owner Occupied | 204,233 | 213,484 | ||||||
Commercial real estate | 1,478,916 | 1,474,782 | ||||||
Residential real estate | 1,548,965 | 1,587,694 | ||||||
Home equity | 122,345 | 136,469 | ||||||
Consumer | 40,901 | 47,688 | ||||||
DDA overdrafts | 6,503 | 2,497 | ||||||
Total loans | $ | 3,543,814 | $ | 3,622,119 |
2021 | 2020 | |||||||||||||
Amount | Percent of Loans in Each Category to Total Loans | Amount | Percent of Loans in Each Category to Total Loans | |||||||||||
Commercial and industrial | $ | 3,480 | 10 | % | $ | 3,644 | 10 | % | ||||||
1-4 Family | 598 | 3 | 771 | 3 | ||||||||||
Hotels | 2,426 | 9 | 4,088 | 8 | ||||||||||
Multi-family | 483 | 6 | 674 | 6 | ||||||||||
Non Residential Non-Owner Occupied | 2,319 | 18 | 3,223 | 18 | ||||||||||
Non Residential Owner Occupied | 1,485 | 6 | 2,241 | 6 | ||||||||||
Commercial real estate | 7,311 | 42 | 10,997 | 41 | ||||||||||
Residential real estate | 5,716 | 44 | 8,093 | 44 | ||||||||||
Home equity | 517 | 3 | 630 | 4 | ||||||||||
Consumer | 106 | 1 | 163 | 1 | ||||||||||
DDA overdrafts | 1,036 | — | 1,022 | — | ||||||||||
Allowance for Credit Losses | $ | 18,166 | 100 | % | $ | 24,549 | 100 | % |
2021 | 2020 | |||||||
Net charge offs to average loans | 0.09 | % | 0.10 | % | ||||
(Recovery of) provision for credit losses to average loans | (0.09) | 0.29 | ||||||
Allowance for credit losses to nonperforming loans | 290.15 | 200.69 | ||||||
Allowance for credit losses to total loans | 0.51 | 0.68 | ||||||
Non-performing assets as a percentage of total loans and OREO | 0.21 | 0.38 |
Amounts | |||||
Three months or less | $ | 54,173 | |||
Over three months through six months | 40,172 | ||||
Over six months through twelve months | 35,802 | ||||
Over twelve months | 21,106 | ||||
Total | $ | 151,253 |
Immediate Basis Point Change in Interest Rates | Implied Federal Funds Rate Associated with Change in Interest Rates | Estimated Increase (Decrease) in Net Income Over 12 Months | ||||||
December 31, 2021 | ||||||||
+400 | 4.25 | % | +13.4 | % | ||||
+300 | 3.25 | +14.1 | ||||||
+200 | 2.25 | +12.5 | ||||||
+100 | 1.25 | +8.5 | ||||||
December 31, 2020 | ||||||||
+400 | 4.25 | % | +22.1 | % | ||||
+300 | 3.25 | +21.5 | ||||||
+200 | 2.25 | +17.9 | ||||||
+100 | 1.25 | +12.0 |
/s/ Charles R. Hageboeck | /s/ David L. Bumgarner | ||||||||||
Charles R. Hageboeck | David L. Bumgarner | ||||||||||
President & Chief Executive Officer | Chief Financial Officer | ||||||||||
Principal Executive Officer | Principal Financial Officer |
/s/ Crowe LLP | |||||
We have served as the Company's auditor since 2019. | |||||
Louisville, Kentucky | |||||
February 24, 2022 |
December 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 101,804 | $ | 77,412 | ||||
Interest-bearing deposits in depository institutions | 532,827 | 451,247 | ||||||
Cash and Cash Equivalents | 634,631 | 528,659 | ||||||
Investment securities available for sale, at fair value | 1,408,165 | 1,176,797 | ||||||
Other securities | 25,531 | 29,364 | ||||||
Total Investment Securities | 1,433,696 | 1,206,161 | ||||||
Gross loans | 3,543,814 | 3,622,119 | ||||||
Allowance for credit losses | (18,166) | (24,549) | ||||||
Net Loans | 3,525,648 | 3,597,570 | ||||||
Bank owned life insurance | 120,978 | 118,243 | ||||||
Premises and equipment, net | 74,071 | 76,925 | ||||||
Accrued interest receivable | 15,627 | 15,793 | ||||||
Deferred tax assets, net | 63 | — | ||||||
Goodwill and other intangible assets, net | 117,121 | 118,592 | ||||||
Other assets | 81,860 | 96,697 | ||||||
Total Assets | $ | 6,003,695 | $ | 5,758,640 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 1,373,125 | $ | 1,176,990 | ||||
Interest-bearing: | ||||||||
Demand deposits | 1,135,848 | 1,027,201 | ||||||
Savings deposits | 1,347,448 | 1,188,003 | ||||||
Time deposits | 1,068,915 | 1,260,022 | ||||||
Total Deposits | 4,925,336 | 4,652,216 | ||||||
Short-term borrowings: | ||||||||
Securities sold under agreements to repurchase | 312,458 | 295,956 | ||||||
Deferred tax liabilities, net | — | 3,202 | ||||||
Other liabilities | 84,796 | 106,160 | ||||||
Total Liabilities | 5,322,590 | 5,057,534 | ||||||
Commitments and contingencies - see Note Fourteen | ||||||||
Shareholders’ Equity | ||||||||
Preferred stock, par value $25 per share: 500,000 shares authorized; — issued | — | — | ||||||
Common stock, par value $2.50 per share: 50,000,000 shares authorized; 19,047,548 shares issued at December 31, 2021 and 2020, less 3,985,690 and 3,280,040 shares in treasury, respectively | 47,619 | 47,619 | ||||||
Capital surplus | 170,942 | 171,304 | ||||||
Retained earnings | 641,826 | 589,988 | ||||||
Cost of common stock in treasury | (193,542) | (139,038) | ||||||
Accumulated other comprehensive income (loss): | ||||||||
Unrealized gain on securities available-for-sale | 17,745 | 36,894 | ||||||
Underfunded pension liability | (3,485) | (5,661) | ||||||
Total Accumulated Other Comprehensive Income (Loss) | 14,260 | 31,233 | ||||||
Total Shareholders’ Equity | 681,105 | 701,106 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 6,003,695 | $ | 5,758,640 |
Year Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Interest Income | |||||||||||
Interest and fees on loans | $ | 136,676 | $ | 150,498 | $ | 170,012 | |||||
Interest on investment securities: | |||||||||||
Taxable | 23,071 | 23,355 | 23,389 | ||||||||
Tax-exempt | 5,027 | 3,914 | 2,967 | ||||||||
Interest on deposits in depository institutions | 693 | 492 | 1,332 | ||||||||
Total Interest Income | 165,467 | 178,259 | 197,700 | ||||||||
Interest Expense | |||||||||||
Interest on deposits | 9,405 | 22,522 | 32,666 | ||||||||
Interest on short-term borrowings | 489 | 993 | 3,491 | ||||||||
Interest on long-term debt | — | 100 | 182 | ||||||||
Total Interest Expense | 9,894 | 23,615 | 36,339 | ||||||||
Net Interest Income | 155,573 | 154,644 | 161,361 | ||||||||
(Recovery of) provision for credit losses | (3,165) | 10,722 | (1,250) | ||||||||
Net Interest Income After (Recovery of) Provision for Credit Losses | 158,738 | 143,922 | 162,611 | ||||||||
Non-Interest Income | |||||||||||
Net gains on sale of investment securities | 312 | 62 | 69 | ||||||||
Unrealized gains (losses) recognized on equity securities still held | 504 | (863) | 888 | ||||||||
Service charges | 25,539 | 25,733 | 31,515 | ||||||||
Bankcard revenue | 26,987 | 23,059 | 21,093 | ||||||||
Trust and investment management fee income | 8,415 | 7,736 | 7,159 | ||||||||
Bank owned life insurance | 3,895 | 4,424 | 3,766 | ||||||||
Sale of VISA shares | — | 17,837 | — | ||||||||
Other income | 3,989 | 4,692 | 4,000 | ||||||||
Total Non-Interest Income | 69,641 | 82,680 | 68,490 | ||||||||
Non-Interest Expense | |||||||||||
Salaries and employee benefits | 61,850 | 62,074 | 62,138 | ||||||||
Occupancy related expenses | 10,083 | 9,765 | 10,595 | ||||||||
Equipment and software related expenses | 10,486 | 10,200 | 8,964 | ||||||||
FDIC insurance expense | 1,583 | 884 | 638 | ||||||||
Advertising | 3,091 | 2,776 | 3,344 | ||||||||
Bankcard expenses | 6,455 | 5,893 | 5,555 | ||||||||
Postage, delivery, and statement mailings | 2,323 | 2,268 | 2,416 | ||||||||
Office supplies | 1,547 | 1,556 | 1,559 | ||||||||
Legal and professional fees | 2,279 | 2,176 | 2,371 | ||||||||
Telecommunications | 2,858 | 2,129 | 2,455 | ||||||||
Repossessed asset (gains) losses, net of expenses | (57) | 245 | 634 | ||||||||
Merger related costs | — | — | 797 | ||||||||
Other expenses | 14,687 | 15,324 | 16,148 | ||||||||
Total Non-Interest Expense | 117,185 | 115,290 | 117,614 |
CONSOLIDATED STATEMENTS OF INCOME, CONTINUED | |||||||||||
CITY HOLDING COMPANY AND SUBSIDIARIES | |||||||||||
(in thousands, except earnings per share data) | |||||||||||
Year Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Income Before Income Taxes | $ | 111,194 | $ | 111,312 | $ | 113,487 | |||||
Income tax expense | 23,114 | 21,717 | 24,135 | ||||||||
Net Income Available to Common Shareholders | $ | 88,080 | $ | 89,595 | $ | 89,352 | |||||
Average shares outstanding, basic | 15,381 | 15,975 | 16,314 | ||||||||
Effect of dilutive securities | 26 | 20 | 19 | ||||||||
Average shares outstanding, diluted | 15,407 | 15,995 | 16,333 | ||||||||
Basic earnings per common share | $ | 5.67 | $ | 5.55 | $ | 5.43 | |||||
Diluted earnings per common share | $ | 5.66 | $ | 5.55 | $ | 5.42 |
Year Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Net income available to common shareholders | $ | 88,080 | $ | 89,595 | $ | 89,352 | |||||
Available-for-Sale Securities | |||||||||||
Unrealized (loss) gain on available-for-sale securities arising during period | (24,857) | 31,157 | 27,115 | ||||||||
Reclassification adjustment for net gains | (312) | (62) | (69) | ||||||||
Reclassification of unrealized gain on held-to-maturity securities to available-for-sale | — | 1,562 | — | ||||||||
Other comprehensive (loss) income related to available-for-sale securities | (25,169) | 32,657 | 27,046 | ||||||||
Defined Benefit Pension Plan | |||||||||||
Amortization of actuarial net gains | 1,122 | 1,089 | 917 | ||||||||
Recognition of unrealized gains (losses) | 1,726 | (352) | (1,447) | ||||||||
Change in underfunded pension liability | 2,848 | 737 | (530) | ||||||||
Other comprehensive (loss) income before income taxes | (22,321) | 33,394 | 26,516 | ||||||||
Tax effect | 5,348 | (8,001) | (6,194) | ||||||||
Other comprehensive (loss) income, net of tax | (16,973) | 25,393 | 20,322 | ||||||||
Comprehensive income, net of tax | $ | 71,107 | $ | 114,988 | $ | 109,674 |
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||
Balances at December 31, 2018 | $ | 47,619 | $ | 169,555 | $ | 485,967 | $ | (87,895) | $ | (14,482) | $ | 600,764 | ||||||||
Net income | — | — | 89,352 | — | — | 89,352 | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 20,322 | 20,322 | ||||||||||||||
Cash dividends declared ($2.20 per share) | — | — | (36,066) | — | — | (36,066) | ||||||||||||||
Stock-based compensation expense, net | — | 2,516 | — | — | — | 2,516 | ||||||||||||||
Restricted awards granted | — | (1,657) | — | 1,657 | — | — | ||||||||||||||
Exercise of 12 stock options | — | (105) | — | 631 | — | 526 | ||||||||||||||
Purchase of 261 treasury shares | — | — | — | (19,431) | — | (19,431) | ||||||||||||||
Balances at December 31, 2019 | $ | 47,619 | $ | 170,309 | $ | 539,253 | $ | (105,038) | $ | 5,840 | $ | 657,983 |
Balances at December 31, 2019 | $ | 47,619 | $ | 170,309 | $ | 539,253 | $ | (105,038) | $ | 5,840 | $ | 657,983 | ||||||||
— | — | (2,335) | — | — | (2,335) | |||||||||||||||
Balances at January 1, 2020 | 47,619 | 170,309 | 536,918 | (105,038) | 5,840 | 655,648 | ||||||||||||||
Net income | — | — | 89,595 | — | — | 89,595 | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 25,393 | 25,393 | ||||||||||||||
Cash dividends declared ($2.29 per share) | — | — | (36,525) | — | — | (36,525) | ||||||||||||||
Stock-based compensation expense, net | — | 3,253 | — | — | — | 3,253 | ||||||||||||||
Restricted awards granted | — | (2,146) | — | 2,146 | — | — | ||||||||||||||
Exercise of 5 stock options | — | (112) | — | 335 | — | 223 | ||||||||||||||
Purchase of 573 treasury shares | — | — | — | (36,481) | — | (36,481) | ||||||||||||||
Balances at December 31, 2020 | $ | 47,619 | $ | 171,304 | $ | 589,988 | $ | (139,038) | $ | 31,233 | $ | 701,106 |
Balances at December 31, 2020 | $ | 47,619 | $ | 171,304 | $ | 589,988 | $ | (139,038) | $ | 31,233 | $ | 701,106 | ||||||||
Net income | — | — | 88,080 | — | — | 88,080 | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (16,973) | (16,973) | ||||||||||||||
Cash dividends declared ($2.34 per share) | — | — | (36,242) | — | — | (36,242) | ||||||||||||||
Stock-based compensation expense, net | — | 3,121 | — | — | — | 3,121 | ||||||||||||||
Restricted awards granted | — | (1,860) | — | 1,860 | — | — | ||||||||||||||
Exercise of 15 stock options | — | (1,623) | — | 2,314 | — | 691 | ||||||||||||||
Purchase of 760 treasury shares | — | — | — | (58,678) | — | (58,678) | ||||||||||||||
Balances at December 31, 2021 | $ | 47,619 | $ | 170,942 | $ | 641,826 | $ | (193,542) | $ | 14,260 | $ | 681,105 |
Year Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Net income available to common shareholders | $ | 88,080 | $ | 89,595 | $ | 89,352 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization and (accretion), net | 8,782 | 4,882 | 699 | ||||||||
(Recovery of) provision for credit losses | (3,165) | 10,722 | (1,250) | ||||||||
Depreciation of premises and equipment | 5,831 | 5,790 | 5,003 | ||||||||
Deferred income tax expense | 2,185 | 2,640 | 4,939 | ||||||||
Net periodic employee benefit cost | 569 | 723 | 622 | ||||||||
Pension contributions | (1,000) | (450) | — | ||||||||
Unrealized and realized investment securities (gains) losses | (816) | 801 | (957) | ||||||||
Gain from the sale of VISA shares | — | (17,837) | — | ||||||||
Stock-based compensation expense | 3,121 | 3,253 | 2,516 | ||||||||
Excess tax benefit from stock-compensation expense | (579) | (165) | (461) | ||||||||
Increase in value of bank-owned life insurance | (3,895) | (4,424) | (3,766) | ||||||||
Loans held for sale: | |||||||||||
Loans originated for sale | (42,420) | (28,236) | (18,757) | ||||||||
Proceeds from the sale of loans originated for sale | 42,769 | 28,909 | 20,917 | ||||||||
Gain on sale of loans | (349) | (368) | (589) | ||||||||
Asset write down | — | — | 297 | ||||||||
Change in accrued interest receivable | 166 | (4,224) | 855 | ||||||||
Change in other assets | (8,737) | (13,790) | (1,959) | ||||||||
Change in other liabilities | 11,731 | 11,974 | 7,587 | ||||||||
Net Cash Provided by Operating Activities | 102,273 | 89,795 | 105,048 | ||||||||
Net increase in loans | 76,992 | (3,911) | (30,146) | ||||||||
Securities available-for-sale | |||||||||||
Purchases | (560,689) | (461,430) | (209,588) | ||||||||
Proceeds from sales | — | 30,307 | 70,404 | ||||||||
Proceeds from maturities and calls | 291,562 | 138,926 | 75,717 | ||||||||
Securities held-to-maturity | |||||||||||
Proceeds from maturities and calls | — | — | 11,706 | ||||||||
Other investments | |||||||||||
Purchases | (154) | (2,295) | (11,100) | ||||||||
Proceeds from sales | 4,813 | 2,674 | 13,790 | ||||||||
Proceeds from the sale of VISA shares | — | 17,837 | — | ||||||||
Purchases of premises and equipment | (3,323) | (5,544) | (4,729) | ||||||||
Proceeds from the disposals of premises and equipment | 367 | 483 | 598 | ||||||||
Proceeds from the disposition of assets held-for-sale | — | 540 | 2,285 | ||||||||
Proceeds from bank-owned life insurance policies | 2,156 | 2,019 | 2,423 | ||||||||
Payments for low income housing tax credits | (2,891) | (4,892) | (5,530) | ||||||||
Sale of Virginia Beach branch, net | — | — | (24,661) | ||||||||
Net Cash Used in Investing Activities | (191,167) | (285,286) | (108,831) | ||||||||
Net increase in noninterest-bearing deposits | 196,135 | 371,903 | 26,727 | ||||||||
Net increase in interest-bearing deposits | 77,178 | 205,041 | 100,192 | ||||||||
Net increase (decrease) in short-term borrowings | 16,502 | 84,701 | (50,656) | ||||||||
Repayment of long-term debt | — | (4,056) | — | ||||||||
Purchases of treasury stock | (58,678) | (36,481) | (19,431) | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS CONTINUED | |||||||||||
CITY HOLDING COMPANY AND SUBSIDIARIES | |||||||||||
(in thousands) | |||||||||||
Year Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Proceeds from exercise of stock options | 691 | 223 | 526 | ||||||||
Other financing activities | (824) | (652) | (875) | ||||||||
Dividends paid | (36,138) | (36,673) | (35,547) | ||||||||
Net Cash Provided by Financing Activities | 194,866 | 584,006 | 20,936 | ||||||||
Increase in Cash and Cash Equivalents | 105,972 | 388,515 | 17,153 | ||||||||
Cash and cash equivalents at beginning of period | 528,659 | 140,144 | 122,991 | ||||||||
Cash and Cash Equivalents at End of Period | $ | 634,631 | $ | 528,659 | $ | 140,144 | |||||
Supplemental Cash Flow Information: | |||||||||||
Interest paid | $ | 11,100 | $ | 25,400 | $ | 37,000 | |||||
Income taxes paid | 18,495 | 26,700 | 14,900 |
Portfolio Segment | Measurement Method | ||||
Commercial and industrial | Migration | ||||
Commercial real estate: | |||||
1-4 family | Migration | ||||
Hotels | Migration | ||||
Multi-family | Migration | ||||
Non Residential Non-Owner Occupied | Migration | ||||
Non Residential Owner Occupied | Migration | ||||
Residential real estate | Vintage | ||||
Home equity | Vintage | ||||
Consumer | Vintage |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||||
Obligations of states and | ||||||||||||||||||||||||||
political subdivisions | 263,809 | 8,622 | 215 | 272,216 | 266,483 | 11,467 | 139 | 277,811 | ||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
U.S. government agencies | 1,085,092 | 16,146 | 6,927 | 1,094,311 | 815,682 | 34,807 | 105 | 850,384 | ||||||||||||||||||
Private label | 8,555 | 553 | — | 9,108 | 9,976 | 916 | — | 10,892 | ||||||||||||||||||
Trust preferred securities | 4,570 | — | 367 | 4,203 | 4,557 | — | 457 | 4,100 | ||||||||||||||||||
Corporate securities | 27,292 | 1,047 | 12 | 28,327 | 31,465 | 2,146 | 1 | 33,610 | ||||||||||||||||||
Total Securities | ||||||||||||||||||||||||||
Available-for-Sale | $ | 1,389,318 | $ | 26,368 | $ | 7,521 | $ | 1,408,165 | $ | 1,128,163 | $ | 49,336 | $ | 702 | $ | 1,176,797 |
December 31, 2021 | ||||||||||||||||||||
Less Than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | |||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 13,277 | $ | 152 | $ | 2,420 | $ | 63 | $ | 15,697 | $ | 215 | ||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government agencies | 639,514 | 6,920 | 23,295 | 7 | 662,809 | 6,927 | ||||||||||||||
Trust preferred securities | — | — | 4,203 | 367 | 4,203 | 367 | ||||||||||||||
Corporate securities | 988 | 12 | — | — | 988 | 12 | ||||||||||||||
Total available-for-sale | $ | 653,779 | $ | 7,084 | $ | 29,918 | $ | 437 | $ | 683,697 | $ | 7,521 |
December 31, 2020 | ||||||||||||||||||||
Less Than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | |||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 10,578 | $ | 139 | $ | — | $ | — | $ | 10,578 | $ | 139 | ||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government agencies | 62,412 | 105 | 35 | — | 62,447 | 105 | ||||||||||||||
Trust preferred securities | — | — | 4,100 | 457 | 4,100 | 457 | ||||||||||||||
Corporate securities | 488 | 1 | — | — | 488 | 1 | ||||||||||||||
Total available-for-sale | $ | 73,478 | $ | 245 | $ | 4,135 | $ | 457 | $ | 77,613 | $ | 702 |
Cost | Estimated Fair Value | |||||||
Securities Available-for-Sale | ||||||||
Due in one year or less | $ | 3,024 | $ | 3,089 | ||||
Due after one year through five years | 41,823 | 43,746 | ||||||
Due after five years through ten years | 269,825 | 279,486 | ||||||
Due after ten years | 1,074,646 | 1,081,844 | ||||||
$ | 1,389,318 | $ | 1,408,165 |
For the year ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Gross unrealized gains recognized on equity securities still held | $ | 547 | $ | 223 | $ | 888 | |||||
Gross unrealized losses recognized on equity securities still held | (43) | (1,086) | — | ||||||||
Net unrealized gains (losses) recognized on equity securities still held | $ | 504 | $ | (863) | $ | 888 | |||||
Gross realized gains | $ | 312 | $ | 139 | $ | 226 | |||||
Gross realized losses | — | (77) | (157) | ||||||||
Net realized investment security gains | $ | 312 | $ | 62 | $ | 69 |
December 31, 2021 | December 31, 2020 | |||||||
Commercial and industrial | $ | 346,184 | $ | 372,989 | ||||
1-4 Family | 107,873 | 109,812 | ||||||
Hotels | 311,315 | 294,464 | ||||||
Multi-family | 215,677 | 215,671 | ||||||
Non Residential Non-Owner Occupied | 639,818 | 641,351 | ||||||
Non Residential Owner Occupied | 204,233 | 213,484 | ||||||
Commercial real estate | 1,478,916 | 1,474,782 | ||||||
Residential real estate | 1,548,965 | 1,587,694 | ||||||
Home equity | 122,345 | 136,469 | ||||||
Consumer | 40,901 | 47,688 | ||||||
DDA overdrafts | 6,503 | 2,497 | ||||||
Gross loans | 3,543,814 | 3,622,119 | ||||||
Allowance for credit losses | (18,166) | (24,549) | ||||||
Net loans | $ | 3,525,648 | $ | 3,597,570 | ||||
Construction loans included in: | ||||||||
Residential real estate | $ | 17,252 | $ | 27,078 | ||||
Commercial real estate | 11,783 | 40,449 |
Beginning Balance | Charge-offs | Recoveries | Impact of adopting CECL | (Recovery of) provision for credit losses | Ending Balance | |||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Commercial and industrial | $ | 3,644 | $ | (245) | $ | 171 | $ | — | $ | (90) | $ | 3,480 | ||||||||
1-4 Family | 771 | (311) | 125 | — | 13 | 598 | ||||||||||||||
Hotels | 4,088 | (2,075) | — | — | 413 | 2,426 | ||||||||||||||
Multi-family | 674 | — | — | — | (191) | 483 | ||||||||||||||
Non Residential Non-Owner Occupied | 3,223 | (1) | 45 | — | (948) | 2,319 | ||||||||||||||
Non Residential Owner Occupied | 2,241 | — | 54 | — | (810) | 1,485 | ||||||||||||||
Commercial real estate | 10,997 | (2,387) | 224 | — | (1,523) | 7,311 | ||||||||||||||
Residential real estate | 8,093 | (265) | 127 | — | (2,239) | 5,716 | ||||||||||||||
Home equity | 630 | (177) | 90 | — | (26) | 517 | ||||||||||||||
Consumer | 163 | (242) | 255 | — | (70) | 106 | ||||||||||||||
DDA overdrafts | 1,022 | (2,151) | 1,382 | — | 783 | 1,036 | ||||||||||||||
$ | 24,549 | $ | (5,467) | $ | 2,249 | $ | — | $ | (3,165) | $ | 18,166 | |||||||||
December 31, 2020 | ||||||||||||||||||||
Commercial and industrial | $ | 2,059 | $ | (843) | $ | 91 | $ | 1,715 | $ | 622 | $ | 3,644 | ||||||||
1-4 Family | — | (188) | 316 | 886 | (243) | 771 | ||||||||||||||
Hotels | 60 | (35) | 48 | 577 | 3,438 | 4,088 | ||||||||||||||
Multi-family | 121 | — | — | 343 | 210 | 674 | ||||||||||||||
Non Residential Non-Owner Occupied | 1,181 | (728) | 83 | 852 | 1,835 | 3,223 | ||||||||||||||
Non Residential Owner Occupied | 1,244 | (162) | 78 | 596 | 485 | 2,241 | ||||||||||||||
Commercial real estate | 2,606 | (1,113) | 525 | 3,254 | 5,725 | 10,997 | ||||||||||||||
Residential real estate | 3,448 | (1,250) | 184 | 2,139 | 3,572 | 8,093 | ||||||||||||||
Home equity | 1,187 | (420) | 136 | (598) | 325 | 630 | ||||||||||||||
Consumer | 975 | (192) | 238 | (810) | (48) | 163 | ||||||||||||||
DDA Overdrafts | 1,314 | (2,345) | 1,467 | 60 | 526 | 1,022 | ||||||||||||||
$ | 11,589 | $ | (6,163) | $ | 2,641 | $ | 5,760 | $ | 10,722 | $ | 24,549 | |||||||||
Beginning Balance | Charge-offs | Recoveries | (Recovery of) provision for credit losses | Ending Balance | |||||||||||||
December 31, 2019 | |||||||||||||||||
Commercial and industrial | 4,060 | (261) | 764 | (2,504) | 2,059 | ||||||||||||
Commercial real estate | 4,495 | (1,358) | 624 | (1,155) | 2,606 | ||||||||||||
Residential real estate | 4,116 | (787) | 369 | (250) | 3,448 | ||||||||||||
Home equity | 1,268 | (294) | — | 213 | 1,187 | ||||||||||||
Consumer | 319 | (1,177) | 265 | 1,568 | 975 | ||||||||||||
DDA Overdrafts | 1,708 | (2,777) | 1,505 | 878 | 1,314 | ||||||||||||
$ | 15,966 | $ | (6,654) | $ | 3,527 | $ | (1,250) | $ | 11,589 |
Non-accrual With No | Non-accrual With | Loans Past Due | |||||||||
Allowance for | Allowance for | Over 90 Days | |||||||||
Credit Losses | Credit Losses | Still Accruing | |||||||||
Commercial & Industrial | $ | — | $ | 996 | $ | 43 | |||||
1-4 Family | — | 1,016 | — | ||||||||
Hotels | — | 113 | — | ||||||||
Multi-family | — | — | — | ||||||||
Non Residential Non-Owner Occupied | — | 652 | — | ||||||||
Non Residential Owner Occupied | — | 592 | — | ||||||||
Commercial Real Estate | — | 2,373 | — | ||||||||
Residential Real Estate | 63 | 2,746 | — | ||||||||
Home Equity | — | 40 | — | ||||||||
Consumer | — | — | — | ||||||||
Total | $ | 63 | $ | 6,155 | $ | 43 |
Non-accrual With No | Non-accrual With | Loans Past Due | |||||||||
Allowance for | Allowance for | Over 90 Days | |||||||||
Credit Losses | Credit Losses | Still Accruing | |||||||||
Commercial & Industrial | $ | 172 | $ | 596 | $ | — | |||||
1-4 Family | — | 2,056 | — | ||||||||
Hotels | — | 2,951 | — | ||||||||
Multi-family | — | — | — | ||||||||
Non Residential Non-Owner Occupied | — | 508 | — | ||||||||
Non Residential Owner Occupied | 2,297 | 589 | — | ||||||||
Commercial Real Estate | 2,297 | 6,104 | — | ||||||||
Residential Real Estate | 21 | 2,947 | — | ||||||||
Home Equity | — | 95 | — | ||||||||
Consumer | — | — | — | ||||||||
Total | $ | 2,490 | $ | 9,742 | $ | — |
December 31, 2021 | |||||||||||||||||||||||
30-59 Past Due | 60-89 Past Due | 90+ Past Due | Total Past Due | Current Loans | Non-accrual | Total Loans | |||||||||||||||||
Commercial and industrial | $ | 116 | $ | 177 | $ | 43 | $ | 336 | $ | 344,852 | $ | 996 | $ | 346,184 | |||||||||
1-4 Family | 21 | — | — | 21 | 106,836 | 1,016 | 107,873 | ||||||||||||||||
Hotels | — | — | — | — | 311,202 | 113 | 311,315 | ||||||||||||||||
Multi-family | — | — | — | — | 215,677 | — | 215,677 | ||||||||||||||||
Non Residential Non-Owner Occupied | — | — | — | — | 639,166 | 652 | 639,818 | ||||||||||||||||
Non Residential Owner Occupied | — | — | — | — | 203,641 | 592 | 204,233 | ||||||||||||||||
Commercial real estate | 21 | — | — | 21 | 1,476,522 | 2,373 | 1,478,916 | ||||||||||||||||
Residential real estate | 5,166 | 156 | — | 5,322 | 1,540,834 | 2,809 | 1,548,965 | ||||||||||||||||
Home equity | 592 | 26 | — | 618 | 121,687 | 40 | 122,345 | ||||||||||||||||
Consumer | 59 | 1 | — | 60 | 40,841 | — | 40,901 | ||||||||||||||||
Overdrafts | 485 | 4 | — | 489 | 6,014 | — | 6,503 | ||||||||||||||||
Total | $ | 6,439 | $ | 364 | $ | 43 | $ | 6,846 | $ | 3,530,750 | $ | 6,218 | $ | 3,543,814 | |||||||||
December 31, 2020 | |||||||||||||||||||||||
30-59 Past Due | 60-89 Past Due | 90+ Past Due | Total Past Due | Current Loans | Non-accrual | Total Loans | |||||||||||||||||
Commercial and industrial | $ | 1,213 | $ | 27 | $ | — | $ | 1,240 | $ | 370,981 | $ | 768 | $ | 372,989 | |||||||||
1-4 Family | 484 | — | — | 484 | 107,272 | 2,056 | 109,812 | ||||||||||||||||
Hotels | — | — | — | — | 291,513 | 2,951 | 294,464 | ||||||||||||||||
Multi-family | — | — | — | — | 215,671 | — | 215,671 | ||||||||||||||||
Non Residential Non-Owner Occupied | 119 | — | — | 119 | 640,724 | 508 | 641,351 | ||||||||||||||||
Non Residential Owner Occupied | 22 | — | — | 22 | 210,576 | 2,886 | 213,484 | ||||||||||||||||
Commercial real estate | 625 | — | — | 625 | 1,465,756 | 8,401 | 1,474,782 | ||||||||||||||||
Residential real estate | 5,177 | 816 | — | 5,993 | 1,578,733 | 2,968 | 1,587,694 | ||||||||||||||||
Home equity | 575 | — | — | 575 | 135,799 | 95 | 136,469 | ||||||||||||||||
Consumer | 63 | 50 | — | 113 | 47,575 | — | 47,688 | ||||||||||||||||
Overdrafts | 334 | 7 | — | 341 | 2,156 | — | 2,497 | ||||||||||||||||
Total | $ | 7,987 | $ | 900 | $ | — | $ | 8,887 | $ | 3,601,000 | $ | 12,232 | $ | 3,622,119 |
December 31, 2021 | December 31, 2020 | |||||||||||||
Secured by | Secured by | |||||||||||||
Real Estate | Equipment | Real Estate | Equipment | |||||||||||
Commercial and industrial | $ | — | $ | — | $ | 173 | $ | — | ||||||
1-4 Family | — | — | — | — | ||||||||||
Hotels | — | — | 2,837 | — | ||||||||||
Multi-family | — | — | — | — | ||||||||||
Non Residential Non-Owner Occupied | — | — | — | — | ||||||||||
Non Residential Owner Occupied | — | — | 2,296 | — | ||||||||||
Commercial real estate | — | — | 5,133 | — | ||||||||||
Total | $ | — | $ | — | $ | 5,306 | $ | — |
December 31, 2019 | ||||||||
Average | Interest | |||||||
Recorded | Income | |||||||
Investment | Recognized | |||||||
With no related allowance recorded: | ||||||||
Commercial and industrial | $ | 578 | $ | — | ||||
Commercial real estate | 4,388 | 41 | ||||||
Total | $ | 4,966 | $ | 41 | ||||
With an allowance recorded: | ||||||||
Commercial and industrial | $ | — | $ | — | ||||
Commercial real estate | 4,261 | 162 | ||||||
Total | $ | 4,261 | $ | 162 |
December 31, 2021 | December 31, 2020 | |||||||
Commercial and industrial | $ | 414 | $ | — | ||||
1-4 Family | 112 | 121 | ||||||
Hotels | — | 2,634 | ||||||
Multi-family | 1,802 | 1,883 | ||||||
Non Residential Non-Owner Occupied | — | — | ||||||
Non Residential Owner Occupied | — | — | ||||||
Commercial real estate | 1,914 | 4,638 | ||||||
Residential real estate | 16,943 | 19,226 | ||||||
Home equity | 1,784 | 2,001 | ||||||
Consumer | 225 | 277 | ||||||
Total TDRs | $ | 21,280 | $ | 26,142 |
Risk Rating | Description | ||||
Pass Ratings: | |||||
(a) Exceptional | Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy. Loans rated within this category pose minimal risk of loss to the bank. | ||||
(b) Good | Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles. Loans in this category generally have a low chance of loss to the bank. | ||||
(c) Acceptable | Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles. Loans within this category generally have a low risk of loss to the bank. | ||||
(d) Pass/watch | Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk. A borrower in this category poses a low to moderate risk of loss to the bank. | ||||
Special mention | Loans classified as special mention have a potential weakness(es) that deserves management’s close attention. The potential weakness could result in deterioration of the loan repayment or the bank’s credit position at some future date. A loan rated in this category poses a moderate loss risk to the bank. | ||||
Substandard | Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt. Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected and the bank’s collateral value is weakened by the financial deterioration of the borrower. | ||||
Doubtful | Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable. Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position. |
Revolving | ||||||||||||||||||||||||||
Term Loans | Loans | |||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and Risk Level | Amortized | |||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Cost Basis | Total | |||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Pass | $ | 87,148 | $ | 82,946 | $ | 41,908 | $ | 27,355 | $ | 23,895 | $ | 6,755 | $ | 65,775 | $ | 335,782 | ||||||||||
Special mention | 3 | 480 | 17 | — | 21 | — | 3,324 | 3,845 | ||||||||||||||||||
Substandard | 319 | 1,531 | 1,574 | 510 | 395 | 1,550 | 678 | 6,557 | ||||||||||||||||||
Total | $ | 87,470 | $ | 84,957 | $ | 43,499 | $ | 27,865 | $ | 24,311 | $ | 8,305 | $ | 69,777 | $ | 346,184 |
Commercial real estate - | ||||||||||||||||||||||||||
1-4 Family | ||||||||||||||||||||||||||
Pass | $ | 26,425 | $ | 16,163 | $ | 10,659 | $ | 6,208 | $ | 4,250 | $ | 28,734 | $ | 10,877 | $ | 103,316 | ||||||||||
Special mention | — | 122 | — | — | — | 718 | — | 840 | ||||||||||||||||||
Substandard | — | 276 | 158 | — | 722 | 2,561 | — | 3,717 | ||||||||||||||||||
Total | $ | 26,425 | $ | 16,561 | $ | 10,817 | $ | 6,208 | $ | 4,972 | $ | 32,013 | $ | 10,877 | $ | 107,873 |
Commercial real estate - | ||||||||||||||||||||||||||
Hotels | ||||||||||||||||||||||||||
Pass | $ | 38,197 | $ | 16,183 | $ | 64,107 | $ | 21,222 | $ | 41,526 | $ | 55,895 | $ | 279 | $ | 237,409 | ||||||||||
Special mention | 103 | — | 29,914 | — | — | — | — | 30,017 | ||||||||||||||||||
Substandard | 398 | 140 | 15,413 | — | 5,601 | 22,337 | — | 43,889 | ||||||||||||||||||
Total | $ | 38,698 | $ | 16,323 | $ | 109,434 | $ | 21,222 | $ | 47,127 | $ | 78,232 | $ | 279 | $ | 311,315 |
Commercial real estate - | ||||||||||||||||||||||||||
Multi-family | ||||||||||||||||||||||||||
Pass | $ | 20,434 | $ | 78,837 | $ | 53,033 | $ | 2,264 | $ | 19,783 | $ | 38,918 | $ | 540 | $ | 213,809 | ||||||||||
Special mention | — | — | 1,802 | — | — | — | — | 1,802 | ||||||||||||||||||
Substandard | — | — | — | — | — | 66 | — | 66 | ||||||||||||||||||
Total | $ | 20,434 | $ | 78,837 | $ | 54,835 | $ | 2,264 | $ | 19,783 | $ | 38,984 | $ | 540 | $ | 215,677 |
Revolving | ||||||||||||||||||||||||||
Term Loans | Loans | |||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and Risk Level | Amortized | |||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Cost Basis | Total | |||||||||||||||||||
Commercial real estate - | ||||||||||||||||||||||||||
Non Residential Non-Owner Occupied | ||||||||||||||||||||||||||
Pass | $ | 144,927 | $ | 135,423 | $ | 85,296 | $ | 99,618 | $ | 33,770 | $ | 130,342 | $ | 2,655 | $ | 632,031 | ||||||||||
Special mention | 119 | 183 | 186 | 257 | — | 138 | — | 883 | ||||||||||||||||||
Substandard | 640 | 16 | 1,365 | 2,134 | 22 | 2,727 | — | 6,904 | ||||||||||||||||||
Total | $ | 145,686 | $ | 135,622 | $ | 86,847 | $ | 102,009 | $ | 33,792 | $ | 133,207 | $ | 2,655 | $ | 639,818 |
Commercial real estate - | ||||||||||||||||||||||||||
Non Residential Owner Occupied | ||||||||||||||||||||||||||
Pass | $ | 46,445 | $ | 28,535 | $ | 25,647 | $ | 22,197 | $ | 15,296 | $ | 37,806 | $ | 2,509 | $ | 178,435 | ||||||||||
Special mention | — | 30 | 2,744 | 42 | 319 | 2,294 | — | 5,429 | ||||||||||||||||||
Substandard | 199 | 114 | 2,372 | 634 | 6,677 | 9,503 | 870 | 20,369 | ||||||||||||||||||
Total | $ | 46,644 | $ | 28,679 | $ | 30,763 | $ | 22,873 | $ | 22,292 | $ | 49,603 | $ | 3,379 | $ | 204,233 |
Commercial real estate - | ||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Pass | $ | 276,429 | $ | 275,141 | $ | 238,742 | $ | 151,509 | $ | 114,626 | $ | 291,696 | $ | 16,860 | $ | 1,365,003 | ||||||||||
Special mention | 222 | 334 | 34,647 | 299 | 319 | 3,151 | — | 38,972 | ||||||||||||||||||
Substandard | 1,238 | 546 | 19,308 | 2,769 | 13,023 | 37,191 | 866 | 74,941 | ||||||||||||||||||
Total | $ | 277,889 | $ | 276,021 | $ | 292,697 | $ | 154,577 | $ | 127,968 | $ | 332,038 | $ | 17,726 | $ | 1,478,916 |
Residential real estate | ||||||||||||||||||||||||||
Performing | $ | 375,465 | $ | 326,107 | $ | 155,829 | $ | 110,551 | $ | 87,870 | $ | 389,519 | $ | 100,815 | $ | 1,546,156 | ||||||||||
Non-performing | — | — | 232 | 29 | 120 | 692 | 1,736 | 2,809 | ||||||||||||||||||
Total | $ | 375,465 | $ | 326,107 | $ | 156,061 | $ | 110,580 | $ | 87,990 | $ | 390,211 | $ | 102,551 | $ | 1,548,965 |
Home equity | ||||||||||||||||||||||||||
Performing | $ | 9,008 | $ | 6,474 | $ | 3,582 | $ | 2,949 | $ | 1,431 | $ | 8,176 | $ | 90,685 | $ | 122,305 | ||||||||||
Non-performing | — | — | — | — | — | — | 40 | 40 | ||||||||||||||||||
Total | $ | 9,008 | $ | 6,474 | $ | 3,582 | $ | 2,949 | $ | 1,431 | $ | 8,176 | $ | 90,725 | $ | 122,345 |
Consumer | ||||||||||||||||||||||||||
Performing | $ | 13,584 | $ | 9,545 | $ | 8,313 | $ | 4,920 | $ | 1,324 | $ | 1,624 | $ | 1,591 | $ | 40,901 | ||||||||||
Non-performing | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 13,584 | $ | 9,545 | $ | 8,313 | $ | 4,920 | $ | 1,324 | $ | 1,624 | $ | 1,591 | $ | 40,901 |
Revolving | ||||||||||||||||||||||||||
Term Loans | Loans | |||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and Risk Level | Amortized | |||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Cost Basis | Total | |||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Pass | $ | 123,920 | $ | 51,972 | $ | 59,152 | $ | 30,440 | $ | 16,673 | $ | 6,942 | $ | 75,018 | $ | 364,117 | ||||||||||
Special mention | 72 | 27 | 13 | 47 | — | 433 | 508 | 1,100 | ||||||||||||||||||
Substandard | 783 | 1,553 | 918 | 589 | 268 | 1,733 | 1,928 | 7,772 | ||||||||||||||||||
Total | $ | 124,775 | $ | 53,552 | $ | 60,083 | $ | 31,076 | $ | 16,941 | $ | 9,108 | $ | 77,454 | $ | 372,989 |
Commercial real estate - | ||||||||||||||||||||||||||
1-4 Family | ||||||||||||||||||||||||||
Pass | $ | 19,970 | $ | 17,540 | $ | 8,217 | $ | 7,444 | $ | 6,158 | $ | 33,075 | $ | 10,274 | $ | 102,678 | ||||||||||
Special mention | 192 | — | — | — | 159 | 753 | — | 1,104 | ||||||||||||||||||
Substandard | 119 | 343 | — | 863 | 102 | 4,603 | — | 6,030 | ||||||||||||||||||
Total | $ | 20,281 | $ | 17,883 | $ | 8,217 | $ | 8,307 | $ | 6,419 | $ | 38,431 | $ | 10,274 | $ | 109,812 |
Commercial real estate - | ||||||||||||||||||||||||||
Hotels | ||||||||||||||||||||||||||
Pass | $ | 23,886 | $ | 95,269 | $ | 26,206 | $ | 42,593 | $ | 21,490 | $ | 43,686 | $ | — | $ | 253,130 | ||||||||||
Substandard | 343 | 15,412 | — | 6,750 | 4,465 | 14,364 | — | 41,334 | ||||||||||||||||||
Total | $ | 24,229 | $ | 110,681 | $ | 26,206 | $ | 49,343 | $ | 25,955 | $ | 58,050 | $ | — | $ | 294,464 |
Commercial real estate - | ||||||||||||||||||||||||||
Multi-family | ||||||||||||||||||||||||||
Pass | $ | 81,127 | $ | 56,371 | $ | 2,688 | $ | 20,730 | $ | 23,873 | $ | 27,009 | $ | 1,363 | $ | 213,161 | ||||||||||
Special mention | — | 1,883 | 551 | — | — | — | — | 2,434 | ||||||||||||||||||
Substandard | — | — | — | — | — | 76 | — | 76 | ||||||||||||||||||
Total | $ | 81,127 | $ | 58,254 | $ | 3,239 | $ | 20,730 | $ | 23,873 | $ | 27,085 | $ | 1,363 | $ | 215,671 |
Revolving | ||||||||||||||||||||||||||
Term Loans | Loans | |||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and Risk Level | Amortized | |||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Cost Basis | Total | |||||||||||||||||||
Commercial real estate - | ||||||||||||||||||||||||||
Non Residential Non-Owner Occupied | ||||||||||||||||||||||||||
Pass | $ | 155,937 | $ | 101,011 | $ | 115,524 | $ | 51,329 | $ | 76,219 | $ | 125,349 | $ | 8,825 | $ | 634,194 | ||||||||||
Special mention | 16 | 504 | 592 | 37 | — | 147 | — | 1,296 | ||||||||||||||||||
Substandard | 580 | 1,385 | 1,159 | 52 | 1,187 | 1,338 | 160 | 5,861 | ||||||||||||||||||
Total | $ | 156,533 | $ | 102,900 | $ | 117,275 | $ | 51,418 | $ | 77,406 | $ | 126,834 | $ | 8,985 | $ | 641,351 |
Commercial real estate - | ||||||||||||||||||||||||||
Non Residential Owner Occupied | ||||||||||||||||||||||||||
Pass | $ | 31,443 | $ | 26,685 | $ | 26,403 | $ | 20,582 | $ | 20,032 | $ | 50,988 | $ | 5,098 | $ | 181,231 | ||||||||||
Special mention | 234 | 2,901 | 53 | 90 | — | 2,470 | — | 5,748 | ||||||||||||||||||
Substandard | 117 | 5,084 | 696 | 6,069 | 3,820 | 10,557 | 162 | 26,505 | ||||||||||||||||||
Total | $ | 31,794 | $ | 34,670 | $ | 27,152 | $ | 26,741 | $ | 23,852 | $ | 64,015 | $ | 5,260 | $ | 213,484 |
Commercial real estate - | ||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Pass | $ | 312,363 | $ | 296,876 | $ | 179,038 | $ | 142,678 | $ | 147,772 | $ | 280,107 | $ | 25,560 | $ | 1,384,394 | ||||||||||
Special mention | 442 | 5,288 | 1,196 | 127 | 159 | 3,370 | — | 10,582 | ||||||||||||||||||
Substandard | 1,159 | 22,224 | 1,855 | 13,734 | 9,574 | 30,938 | 322 | 79,806 | ||||||||||||||||||
Total | $ | 313,964 | $ | 324,388 | $ | 182,089 | $ | 156,539 | $ | 157,505 | $ | 314,415 | $ | 25,882 | $ | 1,474,782 |
Residential real estate | ||||||||||||||||||||||||||
Performing | $ | 407,135 | $ | 233,709 | $ | 176,523 | $ | 134,425 | $ | 102,828 | $ | 416,473 | $ | 113,633 | $ | 1,584,726 | ||||||||||
Non-performing | — | — | — | 164 | 41 | 1,184 | 1,579 | 2,968 | ||||||||||||||||||
Total | $ | 407,135 | $ | 233,709 | $ | 176,523 | $ | 134,589 | $ | 102,869 | $ | 417,657 | $ | 115,212 | $ | 1,587,694 |
Home equity | ||||||||||||||||||||||||||
Performing | $ | 9,038 | $ | 6,241 | $ | 5,375 | $ | 2,126 | $ | 1,309 | $ | 11,573 | $ | 100,712 | $ | 136,374 | ||||||||||
Non-performing | — | — | — | — | — | — | 95 | 95 | ||||||||||||||||||
Total | $ | 9,038 | $ | 6,241 | $ | 5,375 | $ | 2,126 | $ | 1,309 | $ | 11,573 | $ | 100,807 | $ | 136,469 | ||||||||||
Consumer | ||||||||||||||||||||||||||
Performing | $ | 15,342 | $ | 14,977 | $ | 9,229 | $ | 3,154 | $ | 1,688 | $ | 1,422 | $ | 1,876 | $ | 47,688 | ||||||||||
Non-performing | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 15,342 | $ | 14,977 | $ | 9,229 | $ | 3,154 | $ | 1,688 | $ | 1,422 | $ | 1,876 | $ | 47,688 |
Estimated Useful Life | 2021 | 2020 | |||||||||
Land | $ | 34,338 | $ | 34,185 | |||||||
Buildings and improvements | 10 to 30 yrs. | 98,145 | 97,091 | ||||||||
Equipment | 3 to 7 yrs. | 45,518 | 46,307 | ||||||||
178,001 | 177,583 | ||||||||||
Less: accumulated depreciation | (103,930) | (100,658) | |||||||||
$ | 74,071 | $ | 76,925 |
2021 | 2020 | |||||||
Gross carrying amount | $ | 21,190 | $ | 21,190 | ||||
Accumulated amortization | (13,011) | (11,539) | ||||||
$ | 8,179 | $ | 9,651 | |||||
Beginning balance | $ | 9,651 | $ | 11,300 | ||||
Amortization expense | (1,472) | (1,649) | ||||||
Ending balance | $ | 8,179 | $ | 9,651 |
2022 | $ | 1,386 | |||
2023 | 1,220 | ||||
2024 | 1,209 | ||||
2025 | 1,185 | ||||
2026 | 1,090 | ||||
Thereafter | 2,089 | ||||
$ | 8,179 |
2022 | $ | 871,793 | |||
2023 | 125,695 | ||||
2024 | 33,095 | ||||
2025 | 25,011 | ||||
2026 | 12,994 | ||||
Over five years | 327 | ||||
$ | 1,068,915 |
2021 | 2020 | 2019 | |||||||||
Balance at end of year: | |||||||||||
Securities sold under agreements to repurchase | $ | 312,458 | $ | 295,956 | $ | 211,255 | |||||
Avg. outstanding during the year: | |||||||||||
Federal Home Loan Bank advances | N/A | $ | 151 | $ | 10,752 | ||||||
Securities sold under agreements to repurchase | $ | 298,413 | 253,289 | 200,697 | |||||||
Federal Funds purchased | — | 16 | 3 | ||||||||
Max. outstanding at any month end: | |||||||||||
Federal Home Loan Bank advances | N/A | $ | 9,900 | $ | 154,000 | ||||||
Securities sold under agreements to repurchase | $ | 330,577 | 295,956 | 226,603 | |||||||
Weighted-average interest rate: | |||||||||||
During the year: | |||||||||||
Federal Home Loan Bank advances | N/A | 0.85 | % | 2.72 | % | ||||||
Securities sold under agreements to repurchase | 0.16 | % | 0.39 | 1.59 | |||||||
Federal Funds purchased | 1.46 | 0.83 | 2.84 | ||||||||
End of the year: | |||||||||||
Federal Home Loan Bank advances | N/A | 0.41 | % | 1.85 | % | ||||||
Securities sold under agreements to repurchase | 0.16 | % | 0.34 | 1.51 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||
Non-hedging interest rate derivatives: | |||||||||||||||||||||||
Customer counterparties: | |||||||||||||||||||||||
Loan interest rate swap - assets | $ | 532,136 | $ | 20,614 | $ | 647,613 | $ | 52,364 | |||||||||||||||
Loan interest rate swap - liabilities | 138,138 | 3,560 | 37,721 | 562 | |||||||||||||||||||
Non-hedging interest rate derivatives: | |||||||||||||||||||||||
Financial institution counterparties: | |||||||||||||||||||||||
Loan interest rate swap - assets | 147,644 | 3,867 | 37,721 | 562 | |||||||||||||||||||
Loan interest rate swap - liabilities | 535,577 | 20,679 | 661,866 | 52,607 |
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Change in Fair Value Non-Hedging Interest Rate Derivatives: | |||||||||||
Other (expense) income - derivative assets | $ | (26,483) | $ | 27,240 | $ | 4,342 | |||||
Other income (expense) - derivative liabilities | 26,483 | (27,240) | (4,342) | ||||||||
Other income (expense) - derivative liabilities | 487 | 206 | 165 |
2021 | 2020 | |||||||
Allowance for credit losses | $ | 4,395 | $ | 5,883 | ||||
Deferred compensation payable | 3,538 | 3,165 | ||||||
Underfunded pension liability | 1,112 | 1,784 | ||||||
Accrued expenses | 1,693 | 2,218 | ||||||
Other | 4,876 | 4,543 | ||||||
Total Deferred Tax Assets | 15,614 | 17,593 | ||||||
Unrealized securities gains | 5,680 | 11,637 | ||||||
Other | 9,871 | 9,158 | ||||||
Total Deferred Tax Liabilities | 15,551 | 20,795 | ||||||
Net Deferred Tax Assets/(Liabilities) | $ | 63 | $ | (3,202) |
2021 | 2020 | 2019 | |||||||||
Current: | |||||||||||
Federal | $ | 17,248 | $ | 16,599 | $ | 16,636 | |||||
State | 3,681 | 2,478 | 2,560 | ||||||||
Total current tax expense | 20,929 | 19,077 | 19,196 | ||||||||
Total deferred tax expense | 2,185 | 2,640 | 4,939 | ||||||||
Income tax expense | $ | 23,114 | $ | 21,717 | $ | 24,135 |
2021 | 2020 | 2019 | |||||||||
Computed federal taxes at statutory rate | $ | 23,351 | $ | 23,376 | $ | 23,832 | |||||
State income taxes, net of federal tax benefit | 3,124 | 2,070 | 2,376 | ||||||||
Tax effects of: | |||||||||||
Tax-exempt interest income | (1,177) | (944) | (733) | ||||||||
Bank-owned life insurance | (818) | (929) | (791) | ||||||||
Income tax credits | (1,449) | (1,113) | (889) | ||||||||
Other items, net | 83 | (743) | 340 | ||||||||
Income tax expense | $ | 23,114 | $ | 21,717 | $ | 24,135 | |||||
Effective tax rate | 20.8 | % | 19.5 | % | 21.3 | % |
2021 | 2020 | |||||||
Beginning balance | $ | 2,089 | $ | 1,807 | ||||
Additions for current year tax positions | 368 | 413 | ||||||
Additions for prior year tax positions | — | 434 | ||||||
Decreases for prior year tax positions | (45) | — | ||||||
Decreases related to lapse of applicable statute of limitation | (566) | (565) | ||||||
Ending balance | $ | 1,846 | $ | 2,089 |
2021 | 2020 | 2019 | ||||||||||||||||||
Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price | |||||||||||||||
Outstanding at January 1 | 41,330 | $ | 53.64 | 46,251 | $ | 52.74 | 57,972 | $ | 51.15 | |||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||
Exercised | (14,603) | 47.43 | (4,921) | 45.17 | (11,721) | 44.87 | ||||||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||||
Outstanding at December 31 | 26,727 | $ | 57.04 | 41,330 | $ | 53.64 | 46,251 | $ | 52.74 | |||||||||||
Exercisable at end of year | 20,848 | $ | 54.42 | 21,459 | $ | 50.45 | 8,063 | $ | 44.48 | |||||||||||
Nonvested at beginning of year | 19,871 | 56.97 | 38,188 | 54.42 | 55,275 | 51.40 | ||||||||||||||
Granted during the year | — | — | — | — | — | — | ||||||||||||||
Vested during the year | (13,992) | 53.22 | (18,317) | 51.66 | (17,087) | 44.65 | ||||||||||||||
Forfeited during the year | — | — | — | — | — | — | ||||||||||||||
Nonvested at end of year | 5,879 | $ | 66.32 | 19,871 | $ | 56.97 | 38,188 | $ | 54.42 |
For the year ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Proceeds from stock option exercises | $ | 691 | $ | 223 | $ | 526 | |||||
Intrinsic value of stock options exercised | 474 | 93 | 368 | ||||||||
Stock-based compensation expense associated with stock options | $ | 22 | $ | 60 | $ | 119 | |||||
Income tax benefit recognized related to stock-based compensation | 2 | 5 | 12 | ||||||||
At period-end: | 2021 | ||||||||||
Unrecognized stock-based compensation expense | $ | 2 | |||||||||
Weighted average period in which the above amount is expected to be recognized | 0.2 | years |
2021 | 2020 | 2019 | ||||||||||||||||||
Restricted Awards | Average Market Price at Grant | Restricted Awards | Average Market Price at Grant | Restricted Awards | Average Market Price at Grant | |||||||||||||||
Outstanding at January 1 | 158,554 | 148,083 | 149,692 | |||||||||||||||||
Granted | 34,762 | $ | 76.38 | 44,696 | $ | 69.28 | 44,598 | $ | 77.78 | |||||||||||
Forfeited/Vested | (46,561) | (34,225) | (46,207) | |||||||||||||||||
Outstanding at December 31 | 146,755 | 158,554 | 148,083 |
For the year ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Stock-based compensation expense associated with restricted shares, RSUs and PSUs | $ | 2,949 | $ | 2,836 | $ | 2,022 | |||||
At period-end: | 2021 | ||||||||||
Unrecognized stock-based compensation expense | $ | 4,947 | |||||||||
Weighted average period in which the above amount is expected to be recognized | 2.9 | years |
For the year ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Expense associated with the Company's 401(k) Plan | $ | 1,075 | $ | 1,061 | $ | 1,023 | |||||
At period-end: | |||||||||||
Number of shares of the Company's common stock held by the 401(k) Plan | 178,936 | 198,300 | 203,989 |
Pension Benefits | ||||||||
2021 | 2020 | |||||||
Change in fair value of plan assets: | ||||||||
Fair value at beginning of measurement period | $ | 12,629 | $ | 11,884 | ||||
Actual gain on plan assets | 2,165 | 1,324 | ||||||
Contributions | 1,000 | 450 | ||||||
Benefits paid | (1,090) | (1,029) | ||||||
Fair value at end of measurement period | 14,704 | 12,629 | ||||||
Change in benefit obligation: | ||||||||
Benefit obligation at beginning of measurement period | (15,499) | (15,219) | ||||||
Interest cost | (331) | (448) | ||||||
Actuarial (loss) gain | (174) | 83 | ||||||
Assumption changes | 619 | (944) | ||||||
Benefits paid | 1,090 | 1,029 | ||||||
Benefit obligation at end of measurement period | (14,295) | (15,499) | ||||||
Funded status | $ | 409 | $ | (2,870) | ||||
Weighted-average assumptions for benefit obligation: | ||||||||
Discount rate | 2.63 | % | 2.21 | % | ||||
Expected long-term rate of return | 6.75 | % | 6.75 | % | ||||
Weighted-average assumptions for net periodic pension cost: | ||||||||
Discount rate | 2.21 | % | 3.05 | % | ||||
Expected long-term rate of return | 6.75 | % | 6.75 | % |
2021 | 2020 | 2019 | |||||||||
Interest cost | $ | 331 | $ | 448 | $ | 561 | |||||
Expected return on plan assets | (884) | (814) | (856) | ||||||||
Net amortization and deferral | 1,122 | 1,089 | 917 | ||||||||
Net Periodic Pension Cost | $ | 569 | $ | 723 | $ | 622 |
2021 | 2020 | 2019 | |||||||||
Net actuarial gain (loss) | $ | 2,848 | $ | 737 | $ | (530) | |||||
Deferred tax (expense) benefit | (672) | (128) | 131 | ||||||||
Other comprehensive income (loss), net of tax | $ | 2,176 | $ | 609 | $ | (399) |
2021 | 2020 | |||||||
Net actuarial loss | $ | 4,598 | $ | 7,445 | ||||
Deferred tax benefit | (1,113) | (1,784) | ||||||
Amounts included in accumulated other comprehensive income (loss), net of tax | $ | 3,485 | $ | 5,661 |
Plan Year Ending December 31, | Expected Benefits to be Paid | ||||
2022 | $ | 985 | |||
2023 | 988 | ||||
2024 | 983 | ||||
2025 | 988 | ||||
2026 | 972 | ||||
2027 through 2030 | 4,527 |
Total | Level 1 | Level 2 | Level 3 | |||||||||||
2021 | ||||||||||||||
Cash and cash equivalents | $ | 39 | $ | 39 | $ | — | $ | — | ||||||
Common stocks | 11,835 | 11,835 | — | — | ||||||||||
Corporate bonds | 2,830 | — | 2,830 | — | ||||||||||
Total | $ | 14,704 | $ | 11,874 | $ | 2,830 | $ | — | ||||||
2020 | ||||||||||||||
Cash and cash equivalents | $ | 146 | $ | 146 | $ | — | $ | — | ||||||
U.S. government agencies | 100 | — | 100 | |||||||||||
Common stocks | 10,101 | 10,101 | — | — | ||||||||||
Corporate bonds | 2,282 | — | 2,282 | — | ||||||||||
Total | $ | 12,629 | $ | 10,247 | $ | 2,382 | $ | — |
Pentegra DB Plan's Employer Identification Number | 13-5645888 | ||||
Plan Number | 333 | ||||
Funded status for plan inherited with Classic acquisition | 97.97% | ||||
Funded status for plan inherited with Poage acquisition | 97.98% |
For the year ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Cost of other post-retirement benefits | $ | 277 | $ | 278 | $ | 304 | |||||
At period-end: | |||||||||||
Other post-retirement benefit liability (included in Other Liabilities) | 5,995 | 6,093 | 6,570 | ||||||||
Cash surrender value of insurance policies (included in Other Assets) | 5,071 | 5,916 | 6,544 |
Principal | Principal | |||||||||||||
December 31, 2020 | Additions | Reductions | December 31, 2021 | |||||||||||
Related Party Loans | $ | 19,467 | $ | 329 | $ | (2,727) | $ | 17,069 | ||||||
Unfunded commitments | $ | 12,819 | $ | 6,109 |
December 31, 2021 | December 31, 2020 | |||||||
Commitments to extend credit: | ||||||||
Home equity lines | $ | 221,119 | $ | 215,619 | ||||
Commercial real estate | 50,760 | 65,828 | ||||||
Other commitments | 242,250 | 245,647 | ||||||
Standby letters of credit | 6,023 | 6,460 | ||||||
Commercial letters of credit | 173 | 610 |
December 31, 2021 | Actual | Minimum Required - Basel III | Required to be Considered Well Capitalized | ||||||||||||||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||||||||||||||||
CET 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | $ | 555,532 | 16.1 | % | $ | 241,772 | 7.0 | % | $ | 224,503 | 6.5 | % | |||||||||||||||||||||||
City National Bank | 492,721 | 14.4 | % | 240,392 | 7.0 | % | 223,221 | 6.5 | % | ||||||||||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 555,532 | 16.1 | % | 293,581 | 8.5 | % | 276,311 | 8.0 | % | ||||||||||||||||||||||||||
City National Bank | 492,721 | 14.4 | % | 291,905 | 8.5 | % | 274,734 | 8.0 | % | ||||||||||||||||||||||||||
Total Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 570,336 | 16.5 | % | 362,659 | 10.5 | % | 345,389 | 10.0 | % | ||||||||||||||||||||||||||
City National Bank | 507,526 | 14.8 | % | 360,588 | 10.5 | % | 343,418 | 10.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage Ratio | |||||||||||||||||||||||||||||||||||
City Holding Company | 555,532 | 9.4 | % | 235,403 | 4.0 | % | 294,254 | 5.0 | % | ||||||||||||||||||||||||||
City National Bank | 492,721 | 8.5 | % | 233,342 | 4.0 | % | 291,678 | 5.0 | % |
December 31, 2020: | Actual | Minimum Required - Basel III | Required to be Considered Well Capitalized | ||||||||||||||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||||||||||||||||
CET 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | $ | 557,641 | 16.2 | % | $ | 241,221 | 7.0 | % | $ | 223,991 | 6.5 | % | |||||||||||||||||||||||
City National Bank | 482,754 | 14.1 | % | 239,569 | 7.0 | % | 222,457 | 6.5 | % | ||||||||||||||||||||||||||
Tier 1 Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 557,641 | 16.2 | % | 292,911 | 8.5 | % | 275,681 | 8.0 | % | ||||||||||||||||||||||||||
City National Bank | 482,754 | 14.1 | % | 290,906 | 8.5 | % | 273,793 | 8.0 | % | ||||||||||||||||||||||||||
Total Capital | |||||||||||||||||||||||||||||||||||
City Holding Company | 577,292 | 16.8 | % | 361,831 | 10.5 | % | 344,601 | 10.0 | % | ||||||||||||||||||||||||||
City National Bank | 502,405 | 14.7 | % | 359,354 | 10.5 | % | 342,242 | 10.0 | % | ||||||||||||||||||||||||||
Tier 1 Leverage Ratio | |||||||||||||||||||||||||||||||||||
City Holding Company | 557,641 | 10.2 | % | 218,163 | 4.0 | % | 272,704 | 5.0 | % | ||||||||||||||||||||||||||
City National Bank | 482,754 | 9.0 | % | 215,277 | 4.0 | % | 269,097 | 5.0 | % |
Total | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | |||||||||||||
December 31, 2021 | |||||||||||||||||
Recurring fair value measurements | |||||||||||||||||
Financial Assets | |||||||||||||||||
Obligations of states and political subdivisions | $ | 272,216 | $ | — | $ | 272,216 | $ | — | |||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government agencies | 1,094,311 | — | 1,094,311 | — | |||||||||||||
Private label | 9,108 | — | 5,647 | 3,461 | |||||||||||||
Trust preferred securities | 4,203 | — | 4,203 | — | |||||||||||||
Corporate securities | 28,327 | — | 28,327 | — | |||||||||||||
Marketable equity securities | 9,211 | 4,134 | 5,077 | — | |||||||||||||
Certificates of deposit held for investment | 996 | — | 996 | — | |||||||||||||
Derivative assets | 29,029 | — | 29,029 | — | |||||||||||||
Financial Liabilities | |||||||||||||||||
Derivative liabilities | 24,283 | — | 24,283 | — | |||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Financial Assets | |||||||||||||||||
Loans individually evaluated | $ | — | $ | — | $ | — | $ | — | $ | (478) | |||||||
Non-Financial Assets | |||||||||||||||||
Other real estate owned | 1,319 | — | — | 1,319 | (2) |
Total | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | |||||||||||||
December 31, 2020 | |||||||||||||||||
Recurring fair value measurements | |||||||||||||||||
Financial Assets | |||||||||||||||||
Obligations of states and political subdivisions | $ | 277,811 | $ | — | $ | 277,811 | $ | — | |||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government agencies | 850,384 | — | 850,384 | — | |||||||||||||
Private label | 10,892 | — | 6,061 | 4,831 | |||||||||||||
Trust preferred securities | 4,100 | — | 4,100 | — | |||||||||||||
Corporate securities | 33,610 | — | 29,606 | 4,004 | |||||||||||||
Marketable equity securities | 11,839 | 6,800 | 5,039 | — | |||||||||||||
Certificates of deposit held for investment | 1,992 | — | 1,992 | — | |||||||||||||
Derivative assets | 53,166 | — | 53,166 | — | |||||||||||||
Financial Liabilities | |||||||||||||||||
Derivative liabilities | 53,288 | — | 53,288 | — | |||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Financial Assets | |||||||||||||||||
Loans individually evaluated | $ | 4,101 | $ | — | $ | — | $ | 4,101 | $ | (1,118) | |||||||
Non-Financial Assets | |||||||||||||||||
Other real estate owned | 1,650 | — | — | 1,650 | (292) |
Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2021 | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 634,631 | $ | 634,631 | $ | 634,631 | $ | — | $ | — | |||||||
Securities available-for-sale | 1,408,165 | 1,408,165 | — | 1,404,704 | 3,461 | ||||||||||||
Marketable equity securities | 9,211 | 9,211 | 4,134 | 5,077 | — | ||||||||||||
Net loans | 3,525,648 | 3,456,539 | — | — | 3,456,539 | ||||||||||||
Accrued interest receivable | 15,627 | 15,627 | 15,627 | — | — | ||||||||||||
Derivative assets | 29,029 | 29,029 | — | 29,029 | — | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits | 4,925,336 | 4,926,724 | 3,856,421 | 1,070,303 | — | ||||||||||||
Short-term debt | 312,458 | 312,458 | — | 312,458 | — | ||||||||||||
Accrued interest payable | 600 | 600 | 600 | — | — | ||||||||||||
Derivative liabilities | 24,283 | 24,283 | — | 24,283 | — | ||||||||||||
December 31, 2020 | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 528,659 | $ | 528,659 | $ | 528,659 | $ | — | $ | — | |||||||
Securities available-for-sale | 1,176,797 | 1,176,797 | — | 1,167,962 | 8,835 | ||||||||||||
Marketable equity securities | 11,839 | 11,839 | 6,800 | 5,039 | — | ||||||||||||
Net loans | 3,597,570 | 3,578,013 | — | — | 3,578,013 | ||||||||||||
Accrued interest receivable | 15,793 | 15,793 | 15,793 | — | — | ||||||||||||
Derivative assets | 53,166 | 53,166 | — | 53,166 | — | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits | 4,652,216 | 4,665,905 | 3,392,194 | 1,273,711 | — | ||||||||||||
Short-term debt | 295,956 | 295,956 | — | 295,956 | — | ||||||||||||
Accrued interest payable | 1,586 | 1,586 | 1,586 | — | — | ||||||||||||
Derivative liabilities | 53,288 | 53,288 | — | 53,288 | — |
December 31 | ||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Cash | $ | 26,884 | $ | 22,335 | ||||
Securities available-for-sale | 2,644 | 5,267 | ||||||
Investment in subsidiaries | 659,945 | 681,744 | ||||||
Loans | 479 | 624 | ||||||
Fixed assets | 9 | 15 | ||||||
Other assets | 849 | 932 | ||||||
Total Assets | $ | 690,810 | $ | 710,917 | ||||
Liabilities | ||||||||
Dividends payable | $ | 9,249 | $ | 9,145 | ||||
Deferred tax liability | 104 | 298 | ||||||
Other liabilities | 352 | 368 | ||||||
Total Liabilities | 9,705 | 9,811 | ||||||
Total Shareholders’ Equity | 681,105 | 701,106 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 690,810 | $ | 710,917 |
Year Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Income | |||||||||||
Dividends from subsidiaries | $ | 96,000 | $ | 74,300 | $ | 58,000 | |||||
Realized and unrealized investment securities gains (losses) | 820 | (1,018) | 425 | ||||||||
Other income | 191 | 183 | 151 | ||||||||
97,011 | 73,465 | 58,576 | |||||||||
Expenses | |||||||||||
Interest expense | — | 100 | 182 | ||||||||
Other expenses | 1,610 | 1,810 | 1,794 | ||||||||
1,610 | 1,910 | 1,976 | |||||||||
Income Before Income Tax Benefit and (Excess Dividends) Equity in Undistributed Net Income of Subsidiaries | 95,401 | 71,555 | 56,600 | ||||||||
Income tax benefit | (264) | (760) | (455) | ||||||||
Income Before (Excess Dividends) Equity in Undistributed Net Income of Subsidiaries | 95,665 | 72,315 | 57,055 | ||||||||
(Excess dividends) Equity in undistributed net income of subsidiaries | (7,585) | 17,280 | 32,297 | ||||||||
Net Income | $ | 88,080 | $ | 89,595 | $ | 89,352 | |||||
Total Comprehensive Income | $ | 71,107 | $ | 114,988 | $ | 109,674 |
Year Ended December 31 | |||||||||||
2021 | 2020 | 2019 | |||||||||
Operating Activities | |||||||||||
Net income | $ | 88,080 | $ | 89,595 | $ | 89,352 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Unrealized and realized investment securities (gains) losses | (820) | 1,018 | (425) | ||||||||
(Benefit) provision for deferred income taxes | (194) | (255) | 173 | ||||||||
Depreciation, amortization and accretion, net | — | 1 | 3 | ||||||||
Stock based compensation | 3,121 | 3,253 | 2,516 | ||||||||
Change in other assets | 89 | (284) | 2,696 | ||||||||
Change in other liabilities | (2,775) | (2,936) | (2,060) | ||||||||
Excess dividends of subsidiaries (equity in undistributed net income) | 7,585 | (17,280) | (32,297) | ||||||||
Net Cash Provided by Operating Activities | 95,086 | 73,112 | 59,958 | ||||||||
Investing Activities | |||||||||||
Proceeds from sales of available for sale securities | 3,443 | — | 6 | ||||||||
Net decrease in loans | 145 | 39 | 38 | ||||||||
Net Cash Provided by Investing Activities | 3,588 | 39 | 44 | ||||||||
Financing Activities | |||||||||||
Repayment of long-term debt | — | (4,056) | — | ||||||||
Dividends paid | (36,138) | (36,673) | (35,547) | ||||||||
Purchases of treasury stock | (58,678) | (36,481) | (19,431) | ||||||||
Exercise of stock options | 691 | 223 | 526 | ||||||||
Net Cash Used in Financing Activities | (94,125) | (76,987) | (54,452) | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 4,549 | (3,836) | 5,550 | ||||||||
Cash and cash equivalents at beginning of year | 22,335 | 26,171 | 20,621 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 26,884 | $ | 22,335 | $ | 26,171 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||
2021 | |||||||||||||||||||||||
Interest income | $ | 40,937 | $ | 40,499 | $ | 41,558 | $ | 42,473 | |||||||||||||||
Taxable equivalent adjustment | 331 | 343 | 334 | 325 | |||||||||||||||||||
Interest income (FTE) | 41,268 | 40,842 | 41,892 | 42,798 | |||||||||||||||||||
Interest expense | 3,397 | 2,585 | 2,070 | 1,842 | |||||||||||||||||||
Net interest income | 37,871 | 38,257 | 39,822 | 40,956 | |||||||||||||||||||
Recovery of credit losses | (440) | (2,000) | (725) | — | |||||||||||||||||||
Non-interest income | 16,630 | 17,448 | 17,947 | 17,616 | |||||||||||||||||||
Non-interest expense | 29,809 | 29,574 | 29,178 | 28,624 | |||||||||||||||||||
Income before income tax expense | 25,132 | 28,131 | 29,316 | 29,948 | |||||||||||||||||||
Income tax expense | 4,987 | 5,640 | 6,250 | 6,237 | |||||||||||||||||||
Taxable equivalent adjustment | (331) | (343) | (334) | (325) | |||||||||||||||||||
Net income available to common shareholders | $ | 19,814 | $ | 22,148 | $ | 22,732 | $ | 23,386 | |||||||||||||||
Net earnings allocated to common shareholders | $ | 19,635 | $ | 21,942 | $ | 22,499 | $ | 23,161 | |||||||||||||||
Basic earnings per common share | $ | 1.25 | $ | 1.41 | $ | 1.47 | $ | 1.54 | |||||||||||||||
Diluted earnings per common share | 1.25 | 1.41 | 1.47 | 1.54 | |||||||||||||||||||
Average common shares outstanding: | |||||||||||||||||||||||
Basic | 15,656 | 15,573 | 15,279 | 15,026 | |||||||||||||||||||
Diluted | 15,687 | 15,594 | 15,302 | 15,056 | |||||||||||||||||||
2020 | |||||||||||||||||||||||
Interest income | $ | 48,217 | $ | 44,312 | $ | 43,231 | $ | 42,499 | |||||||||||||||
Taxable equivalent adjustment | 188 | 217 | 301 | 333 | |||||||||||||||||||
Interest income (FTE) | 48,405 | 44,529 | 43,532 | 42,832 | |||||||||||||||||||
Interest expense | 7,801 | 6,242 | 5,254 | 4,318 | |||||||||||||||||||
Net interest income | 40,604 | 38,287 | 38,278 | 38,514 | |||||||||||||||||||
Provision for credit losses | 7,972 | 1,250 | 1,026 | 474 | |||||||||||||||||||
Non-interest income | 33,343 | * | 14,631 | 16,985 | 17,721 | ||||||||||||||||||
Non-interest expense | 29,469 | 28,468 | 28,712 | 28,641 | |||||||||||||||||||
Income before income tax expense | 36,506 | 23,200 | 25,525 | 27,120 | |||||||||||||||||||
Income tax expense | 7,322 | 4,732 | 5,098 | 4,565 | |||||||||||||||||||
Taxable equivalent adjustment | (188) | (217) | (301) | (333) | |||||||||||||||||||
Net income available to common shareholders | $ | 28,996 | $ | 18,251 | $ | 20,126 | $ | 22,222 | |||||||||||||||
Net earnings allocated to common shareholders | $ | 28,736 | $ | 18,051 | $ | 19,929 | $ | 21,992 | |||||||||||||||
Basic earnings per common share | $ | 1.79 | $ | 1.12 | $ | 1.25 | $ | 1.40 | |||||||||||||||
Diluted earnings per common share | 1.78 | 1.12 | 1.25 | 1.40 | |||||||||||||||||||
Average common shares outstanding: | |||||||||||||||||||||||
Basic | 16,080 | 16,081 | 15,950 | 15,708 | |||||||||||||||||||
Diluted | 16,101 | 16,097 | 15,970 | 15,733 | |||||||||||||||||||
*During the first quarter of 2020, the Company sold the entirety of its Visa Inc. Class B common shares in a cash transaction which resulted in a pre-tax gain of $17.8 million, or $0.84 diluted per share on an after-tax basis. |
For the Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Net income available to common shareholders | $ | 88,080 | $ | 89,595 | $ | 89,352 | |||||
Less: earnings allocated to participating securities | (843) | (887) | (806) | ||||||||
Net earnings allocated to common shareholders | $ | 87,237 | $ | 88,708 | $ | 88,546 | |||||
Distributed earnings allocated to common shares outstanding | $ | 34,901 | $ | 35,745 | $ | 35,542 | |||||
Undistributed earnings allocated to common shares outstanding | 52,336 | 52,963 | 53,004 | ||||||||
Net earnings allocated to common shareholders | $ | 87,237 | $ | 88,708 | $ | 88,546 | |||||
Average shares outstanding, basic | 15,381 | 15,975 | 16,314 | ||||||||
Effect of dilutive securities | 26 | 20 | 19 | ||||||||
Average shares outstanding, diluted | 15,407 | 15,995 | 16,333 | ||||||||
Basic earnings per share | $ | 5.67 | $ | 5.55 | $ | 5.43 | |||||
Diluted earnings per share | $ | 5.66 | $ | 5.55 | $ | 5.42 |
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Unrealized | |||||||||||
Gains (Losses) on | |||||||||||
Defined Benefit | Securities | ||||||||||
Pension Plans | Available-for-Sale | Total | |||||||||
Balance at December 31, 2019 | $ | (6,270) | $ | 12,110 | $ | 5,840 | |||||
Other comprehensive income before reclassifications | 609 | 23,643 | 24,252 | ||||||||
Amounts reclassified from other comprehensive income | — | (47) | (47) | ||||||||
Reclassification of unrealized gains on held-to-maturity securities to available-for-sale | — | 1,188 | 1,188 | ||||||||
609 | 24,784 | 25,393 | |||||||||
Balance at December 31, 2020 | $ | (5,661) | $ | 36,894 | $ | 31,233 | |||||
Other comprehensive income (loss) before reclassifications | 2,176 | (18,912) | (16,736) | ||||||||
Amounts reclassified from other comprehensive income (loss) | — | (237) | (237) | ||||||||
2,176 | (19,149) | (16,973) | |||||||||
Balance at December 31, 2021 | $ | (3,485) | $ | 17,745 | $ | 14,260 |
Amounts reclassified from Other Comprehensive Income (Loss) | Affected line item | |||||||||||||
December 31, | in the Consolidated | |||||||||||||
2021 | 2020 | 2019 | Statements of Income | |||||||||||
Securities available-for-sale: | ||||||||||||||
Net securities gains reclassified into earnings | $ | (312) | $ | (62) | $ | (69) | Net gains on sale of investment securities | |||||||
Related income tax expense | 75 | 15 | 15 | Income tax expense | ||||||||||
Net effect on accumulated other comprehensive income (loss) | $ | (237) | $ | (47) | $ | (54) |
Point of Revenue | ||||||||||||||
Recognition | 2021 | 2020 | 2019 | |||||||||||
Major revenue streams | ||||||||||||||
Service charges | At a point in time and over time | $ | 25,539 | $ | 25,733 | $ | 31,515 | |||||||
Bankcard revenue | At a point in time | 26,987 | 23,059 | 21,093 | ||||||||||
Trust and investment management fee income | Over time | 8,415 | 7,736 | 7,159 | ||||||||||
Other income | At a point in time and over time | 3,989 | 4,692 | 4,000 | ||||||||||
Net revenue from contracts with customers | 64,930 | 61,220 | 63,767 | |||||||||||
Non-interest income within the scope of other GAAP topics | 4,711 | 21,460 | 4,723 | |||||||||||
Total non-interest income | $ | 69,641 | $ | 82,680 | $ | 68,490 |
Plan Category | Number of Stock Options to be Issued Upon Exercise of Outstanding Awards (a) | Weighted-average exercise price of outstanding awards (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | ||||||||
Plans approved by shareholders | 26,727 | $ | 57.04 | 362,271 | |||||||
Plans not approved by shareholders | — | — | — | ||||||||
Total | 26,727 | $ | 57.04 | 362,271 |
(a) | (1) | Financial Statements (PCAOB ID: 173). Reference is made to Part II, Item 8, of this Annual Report on Form 10-K. | ||||||||||||
(2) | Financial Statement Schedules. These schedules are omitted as the required information is inapplicable or the information is presented in the consolidated financial statements or related notes. | |||||||||||||
(3) | Exhibits. The exhibits listed in the "Exhibit Index" beginning on page 115 of this Annual Report on Form 10-K included herein are filed herewith or incorporated by reference from previous filings. | |||||||||||||
(b) | See (a) (3) above. | |||||||||||||
(c) | See (a) (1) and (2) above. |
Exhibit | Description | ||||
2(a) | |||||
2(b) | |||||
2(c) | |||||
2(d) | |||||
3(a) | |||||
3(b) | |||||
4(a) | |||||
4(b) | |||||
4(c) | |||||
10(a) | |||||
10(b) | |||||
10(c) | |||||
10(d) | |||||
10(e) | |||||
10(f) | |||||
10(g) | |||||
10(h) | |||||
10(i) |
10(j) | |||||
10(k) | |||||
21 | |||||
23 | |||||
24 | Power of Attorney (included on the signature page hereof) | ||||
31(a) | |||||
31(b) | |||||
32(a) | |||||
32(b) | |||||
101 | Interactive Data File - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | ||||
101.SCH | XBRL Taxonomy Extension Schema* | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase* | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase* | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase* | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase* | ||||
104 | Cover Page Interactive Data file (formatted as inline XBRL and contained in Exhibit 101). |
Date: | February 24, 2022 | City Holding Company | ||||||||||||
(Registrant) | ||||||||||||||
By: | /s/ Charles R. Hageboeck, Ph.D. | |||||||||||||
Charles R. Hageboeck, Ph.D. | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
By: | /s/ David L. Bumgarner | |||||||||||||
David L. Bumgarner | ||||||||||||||
Executive Vice President, Chief Financial Officer and Principal Accounting Officer | ||||||||||||||
(Principal Financial Officer) | ||||||||||||||
/s/ C. Dallas Kayser | /s/ Charles R. Hageboeck, Ph.D. | |||||||
C. Dallas Kayser | Charles R. Hageboeck, Ph.D. | |||||||
Chairman | Director, President, and Chief Executive Officer | |||||||
/s/ Thomas L. Burnette | /s/ Tracy W. Hylton, II | |||||||
Thomas L. Burnette | Tracy W. Hylton, II | |||||||
Director | Director | |||||||
/s/ Gregory A. Burton | /s/ J. Thomas Jones | |||||||
Gregory A. Burton | J. Thomas Jones | |||||||
Director | Director | |||||||
/s/ Charles W. Fairchilds | /s/ James L. Rossi | |||||||
Charles W. Fairchilds | James L. Rossi | |||||||
Director | Director | |||||||
/s/ William H. File, III | /s/ Sharon H. Rowe | |||||||
William H. File, III | Sharon H. Rowe | |||||||
Director | Director | |||||||
/s/ Robert D. Fisher | /s/ Diane Strong-Treister | |||||||
Robert D. Fisher | Diane Strong-Treister | |||||||
Director | Director | |||||||
/s/ Javier A. Reyes, Ph.D. | ||||||||
Javier A. Reyes | ||||||||
Director | ||||||||
City National Bank of West Virginia | ||||||||
3601 MacCorkle Avenue S.E. | Insured Depository | |||||||
Charleston, West Virginia | National Banking Association | Institution | ||||||
City Financial Corporation | Inactive Securities | |||||||
3601 MacCorkle Avenue, S.E. | Brokerage and Investment | |||||||
Charleston, West Virginia | West Virginia Corporation | Advisory Company | ||||||
City Mortgage Corporation | Inactive Mortgage Banking | |||||||
Pittsburgh, Pennsylvania | Pennsylvania Corporation | Company | ||||||
City Capital Management Company | ||||||||
300 Delaware Avenue | Capital Management | |||||||
Wilmington, Delaware | Delaware Corporation | Company | ||||||
Town Square Statutory Trust I | ||||||||
25 Gatewater Road | Special-purpose Statutory | |||||||
Cross Lanes, West Virginia | Delaware Business Trust | Trust |
/s/ Charles R. Hageboeck | ||
Charles R. Hageboeck | ||
President and Chief Executive Officer |
/s/ David L. Bumgarner | ||
David L. Bumgarner | ||
Executive Vice President and Chief Financial Officer and Principal Accounting Officer |
/s/ Charles R. Hageboeck | ||||||||
Charles R. Hageboeck | ||||||||
President and Chief Executive Officer |
/s/ David L. Bumgarner | ||||||||
David L. Bumgarner | ||||||||
Executive Vice President, Chief Financial Officer and Principal Accounting Officer |