0000726854false00007268542022-07-212022-07-21

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of Earliest Event Reported): July 21, 2022

chco-20220721_g1.jpg
CITY HOLDING COMPANY
(Exact Name of Registrant as Specified in its Charter)

Commission File Number: 0-11733

West Virginia55-0619957
(State or Other Jurisdiction of(I.R.S. Employer
Incorporation or Organization)Identification No.)
 
25 Gatewater Road, Cross Lanes, West Virginia 25313
(Address of Principal Executive Offices, Including Zip Code)
 
304-769-1100
(Registrant’s Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
symbol(s)		Name of each exchange on which registered
Common Stock $2.50 Par ValueCHCONASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

-1-


Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition.

On July 21, 2022, City Holding Company ("the Company") issued a news release, attached as Exhibit 99.1, announcing the Company's earnings results for the second quarter ended June 30, 2022. Furnished as Exhibit 99.1 and incorporated herein by reference is the news release issued by the Company.


Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits
News Release issued July 21, 2022


Signatures

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the Undersigned hereunto duly authorized.

Dated: July 21, 2022City Holding Company
By:/s/ David L. Bumgarner
David L. Bumgarner
Executive Vice President & Chief Financial Officer

-2-













NEWS RELEASE

For Immediate Release
July 21, 2022


For Further Information Contact:
David L. Bumgarner, Executive Vice President and Chief Financial Officer
(304) 769-1169


City Holding Company Announces Second Quarter Results

Charleston, West Virginia – City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $6.2 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $22.7 million and diluted earnings of $1.51 per share for the quarter ended June 30, 2022. For the second quarter of 2022, the Company achieved a return on assets of 1.51% and a return on tangible equity of 18.1%.

Net Interest Income

The Company’s net interest income increased from $37.9 million during the first quarter of 2022 to $41.3 million during the second quarter of 2022. During the second quarter of 2022, the Company’s tax equivalent net interest income increased $3.4 million, or 8.8%, from $38.2 million for the first quarter of 2022 to $41.6 million for the second quarter of 2022. Higher yields from both loans (14 basis points) and investments (26 basis points) increased net interest income by $1.5 million and $1.1 million, respectively. In addition, the yield on deposits in depository institutions also increased by 53 basis points which increased net interest income by $0.6 million. The Company’s reported net interest margin increased from 2.82% for the first quarter of 2022 to 3.04% for the second quarter of 2022.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned increased modestly from 0.18%, or $6.3 million, at March 31, 2022 to 0.19%, or $6.8 million, at June 30, 2022. Total past due loans decreased from $6.7 million, or 0.19% of total loans outstanding, at March 31, 2022 to $6.2 million, or 0.17% of total loans outstanding, at June 30, 2022.

As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses (“ACL”), the Company did not record a provision for credit losses in the second quarter of 2022,


compared to a recovery of credit losses of $2.0 million for the comparable period in 2021 and a recovery of credit losses of $0.8 million for the first quarter of 2022. The Company did not record a provision for credit losses in the second quarter of 2022 primarily because net charge-offs and revisions to qualitative factors were essentially offset by improved loss factors and loan upgrades.

Non-interest Income

Non-interest income was $17.9 million for the second quarter of 2022 as compared to $17.4 million for the second quarter of 2021. During the second quarter of 2022, the Company reported $0.6 million of unrealized fair value losses on the Company’s equity securities as compared to $0.4 million of unrealized fair value gains on the Company’s equity securities in the second quarter of 2021. As of June 30, 2022, the fair value of these equity securities was approximately $7.9 million. Exclusive of these gains and losses, non-interest income increased from $17.0 million for the second quarter of 2021 to $18.5 million for the second quarter of 2022. This increase was primarily due to increases in service charges ($1.2 million, or 19.9%) and other revenue ($0.3 million, or 32.1%).

Non-interest Expenses

Non-interest expenses increased $1.1 million (3.8%), from $29.6 million in the second quarter of 2021 to $30.7 million in the second quarter of 2022. This increase was largely due to increased salary and employee benefits of $0.9 million. As anticipated, salary increases (4.7%) from the quarter ended June 30, 2021, were higher than the Company has typically experienced.

Balance Sheet Trends

Loans increased $6.9 million from March 31, 2022 to June 30, 2022, to $3.57 billion. PPP loans decreased $0.5 million from March 31, 2022 to $0.1 million at June 30, 2022. Excluding outstanding PPP loans (included in the commercial and industrial loan category), total loans increased $7.3 million, or 0.2%, from March 31, 2022 to $3.57 billion at June 30, 2022. Residential real estate loans increased $62.1 million (3.9%); commercial and industrial loans, excluding PPP loans, increased $23.5 million (7.0%); consumer loans increased $4.8 million (12.1%); and home equity loans increased $4.3 million (3.5%). These increases were partially offset by a decrease in commercial real estate loans of $88.0 million (6.0%). Despite solid originations during the second quarter of 2022, loan payoffs were unusually high due to the sale of one of City’s largest customers. The Company has a robust pipeline of new commercial loans that have been approved and scheduled to close in the next several months, and although we anticipate normal payoffs as well, we expect that aggregate commercial loan balances will grow in the third quarter.

Total average depository balances increased $52.3 million, or 1.1%, from the quarter ended March 31, 2022 to the quarter ended June 30, 2022. Average savings deposit balances increased $45.7 million, average noninterest-bearing demand deposit balances increased $36.6 million, and average interest-bearing demand deposit balances increased $13.9 million. These increases were partially offset by a decrease in time deposit balances of $43.8 million. While average deposits increased modestly during the quarter ended June 30, 2022, point-to-point noninterest bearing deposits and customer repurchase agreements both increased significantly from March 31, 2022. At the end of June 2022, the Company received a large, short-term inflow of funds from a customer. These funds exited the Company’s balance sheet in early July. Exclusive of this deposit, total deposits and customer repurchase agreements (combined) would have decreased approximately $85 million from March 31, 2022.

Income Tax Expense



The Company’s effective income tax rate for the second quarter of 2022 was 20.3% compared to 20.8% for the year ended December 31, 2021, and 20.3% for the quarter ended June 30, 2021.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 69.4% and the loan to asset ratio was 57.1% at June 30, 2022. The Company maintained investment securities totaling 24.4% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 66.6% of assets at June 30, 2022. Time deposits fund 15.8% of assets at June 30, 2022, but very few of these deposits are in accounts that have balances of more than $250,000, reflecting the core retail orientation of the Company.

The Company continues to be strongly capitalized with tangible equity of $476 million at June 30, 2022. Due primarily to unrealized security losses during the six months ended June 30, 2022, the Company’s tangible equity ratio decreased from 9.6% at December 31, 2021 to 7.8% at June 30, 2022. However, unrealized security losses are not incorporated into measures of regulatory capital. As a result, at June 30, 2022, City National Bank’s Leverage Ratio was 8.81%, its Common Equity Tier I ratio was 14.80%, its Tier I Capital ratio was 14.80%, and its Total Risk-Based Capital ratio was 15.21%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On May 25, 2022, the Board of Directors of the Company approved a quarterly cash dividend of $0.60 per share payable July 29, 2022, to shareholders of record as of July 15, 2022. On May 25, 2022, the Company announced that the Board of Directors authorized the Company to buy back up to 1,000,000 shares of its common stock (approximately 7% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders. No time limit was placed on the duration of the share repurchase program. As part of this authorization, the Company terminated its previous repurchase program that was approved in March 2021. The Company had repurchased 826,330 shares under the 2021 program. During the quarter ended June 30, 2022, the Company repurchased 208,000 common shares at a weighted average price of $78.33 per share. As of June 30, 2022, the Company could repurchase 895,000 additional shares under the current program.

City Holding Company is the parent company of City National Bank of West Virginia. City National Bank operates 94 branches across West Virginia, Kentucky, Virginia, and Ohio.


Forward-Looking Information

This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, especially in the communities and markets in which we conduct our business; (2) the uncertainties on the Company’s business, results of operations and financial condition, caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its continued influence on financial markets, the effectiveness of the Company’s work from home arrangements and staffing levels in operational facilities, the impact of market participants on which the Company relies and actions taken by governmental authorities and other third parties in response to


the pandemic; (3) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for loan losses may not be sufficient to absorb actual losses in our loan portfolio, and risk from concentrations in our loan portfolio; (4) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (5) changes in the interest rate environment; (6) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (7) changes in technology and increased competition, including competition from non-bank financial institutions; (8) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (9) difficulty growing loan and deposit balances; (10) our ability to effectively execute our business plan, including with respect to future acquisitions; (11) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries; (12) deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions; (13) regulatory enforcement actions and adverse legal actions; (14) difficulty attracting and retaining key employees; (15) other economic, competitive, technological, operational, governmental, regulatory, and market factors affecting our operations. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. Further, the Company is required to evaluate subsequent events through the filing of its March 31, 2022 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary March 31, 2022 results and will adjust the amounts if necessary.



CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Three Months EndedSix Months Ended
June 30,March 31,December 31,September 30,June 30,June 30,June 30,
2022202220212021202120222021
Earnings
Net Interest Income (FTE)$41,611 $38,239 $40,956 $39,822 $38,257 $79,850 $76,128 
Net Income available to common shareholders22,683 21,342 23,386 22,732 22,148 44,025 41,962 
Per Share Data
Earnings per share available to common shareholders:
   Basic$1.51 $1.41 $1.54 $1.47 $1.41 $2.92 $2.66 
   Diluted1.51 1.41 1.54 1.47 1.41 2.92 2.66 
Weighted average number of shares (in thousands):
   Basic14,888 14,974 15,026 15,279 15,573 14,930 15,614 
   Diluted14,909 15,002 15,056 15,302 15,594 14,954 15,640 
Period-end number of shares (in thousands)14,864 15,045 15,062 15,192 15,527 14,864 15,527 
Cash dividends declared$0.60 $0.60 $0.6 $0.58 $0.58 $1.20 $1.16 
Book value per share (period-end)39.83 42.03 45.22 44.58 44.79 39.83 44.79 


Tangible book value per share (period-end)31.99 34.27 37.44 36.85 37.20 31.99 37.20 
Market data:
   High closing price$83.07 $85.99 $83.14 $79.99 $83.85 $85.99 $87.41 
   Low closing price73.88 76.82 76.52 72.29 74.44 73.88 69.05 
   Period-end closing price79.88 78.70 81.79 77.91 75.24 79.88 75.24 
   Average daily volume (in thousands)87 59 52 53 61 73 62 
Treasury share activity:
Treasury shares repurchased (in thousands)208 38 131 337 217 246 292 
      Average treasury share repurchase price
$78.33 $78.09 $78.93 $75.65 $78.75 $78.29 $78.22 
Key Ratios (percent)
Return on average assets1.51 %1.42 %1.56 %1.53 %1.49 %1.47 %1.44 %
Return on average tangible equity18.1 %15.3 %16.7 %15.7 %15.2 %16.6 %14.3 %
Yield on interest earning assets3.15 %2.94 %3.08 %3.04 %3.00 %3.04 %3.08 %
Cost of interest bearing liabilities0.15 %0.17 %0.19 %0.22 %0.27 %0.16 %0.32 %
Net Interest Margin3.04 %2.82 %2.94 %2.89 %2.81 %2.93 %2.86 %
Non-interest income as a percent of total revenue30.9 %32.4 %30.2 %31.1 %31.0 %30.8 %30.9 %
Efficiency Ratio50.5 %51.7 %48.3 %50.0 %52.8 %51.1 %53.5 %
Price/Earnings Ratio (a)13.23 13.93 13.27 13.22 13.35 13.67 14.13 
Capital (period-end)
Average Shareholders' Equity to Average Assets10.26 %11.25 %11.25 %11.69 %11.81 %
Tangible equity to tangible assets7.76 %8.75 %9.58 %9.59 %9.98 %
Consolidated City Holding Company risk based capital ratios (b):
   CET I15.85 %16.18 %16.08 %16.11 %16.40 %
   Tier I15.85 %16.18 %16.08 %16.11 %16.40 %
   Total16.26 %16.60 %16.51 %16.56 %16.88 %
   Leverage9.42 %9.58 %9.44 %9.46 %9.70 %
City National Bank risk based capital ratios (b):
   CET I14.80 %14.82 %14.35 %14.76 %14.82 %
   Tier I14.80 %14.82 %14.35 %14.76 %14.82 %
   Total15.21 %15.24 %14.78 %15.21 %15.30 %
   Leverage8.81 %8.80 %8.45 %8.73 %8.80 %
Other (period-end)
Branches94 94 94 94 94 
FTE915 897 905 921 912 
   Assets per FTE (in thousands)$6,825 $6,703 $6,637 $6,463 $6,477 
   Deposits per FTE (in thousands)5,621 5,574 5,445 5,308 5,271 


(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) June 30, 2022 risk-based capital ratios are estimated.




CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
Three Months EndedSix Months Ended
June 30,March 31,December 31,September 30,June 30,June 30,June 30,
2022202220212021202120222021
Interest Income
   Interest and fees on loans$33,208 $31,874 $35,277 $33,961 $33,114 $65,082 $67,438 
   Interest on investment securities:
     Taxable7,547 6,223 5,753 6,144 5,932 13,770 11,174 
     Tax-exempt1,205 1,216 1,226 1,257 1,291 2,421 2,544 
   Interest on deposits in depository institutions
782 238 217 196 162 1,020 280 
Total Interest Income42,742 39,551 42,473 41,558 40,499 82,293 81,436 
Interest Expense
   Interest on deposits1,328 1,521 1,710 1,955 2,460 2,849 5,740 
   Interest on short-term borrowings
124 114 132 115 125 238 242 
Total Interest Expense1,452 1,635 1,842 2,070 2,585 3,087 5,982 
Net Interest Income41,290 37,916 40,631 39,488 37,914 79,206 75,454 
(Recovery of) provision for credit losses— (756)— (725)(2,000)(756)(2,440)
Net Interest Income After (Recovery of) Provision for Credit Losses41,290 38,672 40,631 40,213 39,914 79,962 77,894 
Non-Interest Income
Net gains on sale of investment securities— — — — 29 — 312 
Unrealized (losses) gains recognized on equity securities still held(601)(723)52 93 410 (1,324)359 
   Service charges7,067 6,725 7,057 6,706 5,895 13,792 11,776 
   Bankcard revenue7,062 6,444 6,762 6,791 7,221 13,506 13,434 
   Trust and investment management fee income
2,100 2,197 2,198 2,172 2,012 4,297 4,045 
   Bank owned life insurance978 2,014 748 747 940 2,992 2,400 
   Other income1,243 791 799 1,438 941 2,034 1,752 
Total Non-Interest Income17,849 17,448 17,616 17,947 17,448 35,297 34,078 
Non-Interest Expense
   Salaries and employee benefits16,413 15,577 15,299 15,321 15,559 31,990 31,230 
   Occupancy related expense2,620 2,709 2,429 2,507 2,525 5,329 5,147 
   Equipment and software related expense
2,732 2,769 2,733 2,554 2,655 5,501 5,199 
   FDIC insurance expense409 435 400 396 382 844 787 
   Advertising951 798 582 804 824 1,749 1,705 
   Bankcard expenses1,665 1,606 1,576 1,549 1,746 3,271 3,330 
   Postage, delivery, and statement mailings
551 636 590 573 568 1,187 1,160 


   Office supplies427 410 378 406 371 837 763 
   Legal and professional fees525 527 405 610 589 1,052 1,264 
   Telecommunications754 584 702 790 676 1,338 1,366 
   Repossessed asset (gains) losses, net of expenses(32)40 (29)(108)1 8 80 
   Other expenses3,674 3,436 3,559 3,776 3,678 7,110 7,352 
Total Non-Interest Expense30,689 29,527 28,624 29,178 29,574 60,216 59,383 
Income Before Income Taxes28,450 26,593 29,623 28,982 27,788 55,043 52,589 
   Income tax expense5,767 5,251 6,237 6,250 5,640 11,018 10,627 
Net Income Available to Common Shareholders$22,683 $21,342 $23,386 $22,732 $22,148 $44,025 $41,962 
Distributed earnings allocated to common shareholders$8,837 $8,943 $8,949 $8,726 $8,921 $17,671 $17,845 
Undistributed earnings allocated to common shareholders13,643 12,199 14,211 13,786 13,021 25,951 23,732 
Net earnings allocated to common shareholders$22,480 $21,142 $23,160 $22,512 $21,942 $43,622 $41,577 
Average common shares outstanding14,888 14,974 15,026 15,279 15,573 14,930 15,614 
Shares for diluted earnings per share14,909 15,002 15,056 15,302 15,594 14,954 15,640 
Basic earnings per common share1.511.411.541.471.412.922.66
Diluted earnings per common share1.511.411.541.471.412.922.66



CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
June 30,March 31,December 31,September 30,June 30,
20222022202120212021
Assets
Cash and due from banks$90,449 $100,877 $101,804 $103,841 $97,523 
Interest-bearing deposits in depository institutions606,530 497,171 532,827 535,708 512,367 
Cash and cash equivalents696,979 598,048 634,631 639,549 609,890 
Investment securities available-for-sale, at fair value1,497,227 1,409,513 1,408,165 1,372,077 1,339,436 
Other securities24,383 24,785 25,531 25,497 25,793 
Total investment securities1,521,610 1,434,298 1,433,696 1,397,574 1,365,229 
Gross loans3,566,758 3,559,905 3,543,814 3,521,925 3,529,416 
Allowance for credit losses(17,015)(17,280)(18,166)(18,751)(20,016)
Net loans3,549,743 3,542,625 3,525,648 3,503,174 3,509,400 
Bank owned life insurance120,528 120,522 120,978 120,238 119,491 
Premises and equipment, net72,388 73,067 74,071 75,156 76,263 
Accrued interest receivable16,342 16,101 15,627 16,224 15,967 
Net deferred tax assets30,802 18,001 63 90 — 
Intangible assets116,428 116,774 117,121 117,489 117,857 
Other assets118,375 92,331 81,860 82,419 89,958 
Total Assets$6,243,195 $6,011,767 $6,003,695 $5,951,913 $5,904,055 
Liabilities
Deposits:
   Noninterest-bearing$1,531,660 $1,357,266 $1,373,125 $1,311,464 $1,279,932 
   Interest-bearing:
   Demand deposits1,189,056 1,191,492 1,135,848 1,139,033 1,070,004 
   Savings deposits1,435,645 1,425,528 1,347,448 1,332,910 1,301,219 
   Time deposits985,567 1,024,559 1,068,915 1,104,069 1,153,391 
Total deposits5,141,928 4,998,845 4,925,336 4,887,476 4,804,546 
Short-term borrowings
   Customer repurchase agreements402,368 288,483 312,458 296,642 311,316 
Net deferred tax liabilities— — — — 2,310 
Other liabilities106,906 92,009 84,796 90,499 90,407 
Total Liabilities5,651,202 5,379,337 5,322,590 5,274,617 5,208,579 
Stockholders' Equity
Preferred stock— — — — — 
Common stock47,619 47,619 47,619 47,619 47,619 
Capital surplus169,557 170,206 170,942 170,300 169,674 
Retained earnings667,933 654,138 641,826 627,463 613,553 


Cost of common stock in treasury(209,133)(194,819)(193,542)(183,303)(157,936)
Accumulated other comprehensive (loss) income:
Unrealized (loss) gain on securities available-for-sale(80,498)(41,229)17,745 20,878 28,227 
Underfunded pension liability
(3,485)(3,485)(3,485)(5,661)(5,661)
Total Accumulated Other Comprehensive (Loss) Income(83,983)(44,714)14,260 15,217 22,566 
Total Stockholders' Equity591,993 632,430 681,105 677,296 695,476 
Total Liabilities and Stockholders' Equity$6,243,195 $6,011,767 $6,003,695 $5,951,913 $5,904,055 
Regulatory Capital
Total CET 1 capital$564,158 $565,048 $555,532 $550,426 $561,317 
Total tier 1 capital564,158 565,048 555,532 550,426 561,317 
Total risk-based capital578,657 579,807 570,336 565,712 577,543 
Total risk-weighted assets3,558,249 3,492,920 3,453,893 3,417,020 3,421,764 




CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
June 30,March 31,December 31,September 30,June 30,
20222022202120212021
Commercial and industrial$360,481 $337,384 $346,184 $353,046 $358,583 
1-4 Family108,765 108,424 107,873 108,913 108,079 
Hotels337,910 314,902 311,315 297,341 290,119 
Multi-family203,856 209,359 215,677 215,307 212,715 
Non Residential Non-Owner Occupied551,240 637,092 639,818 664,365 653,264 
Non Residential Owner Occupied180,188 200,180 204,233 205,579 209,100 
Commercial real estate (1)
1,381,959 1,469,957 1,478,916 1,491,505 1,473,277 
Residential real estate (2)
1,651,005 1,588,860 1,548,965 1,506,572 1,521,102 
Home equity125,742 121,460 122,345 124,806 127,608 
Consumer44,580 39,778 40,901 43,296 45,184 
DDA Overdrafts2,991 2,466 6,503 2,700 3,662 
Gross Loans$3,566,758 $3,559,905 $3,543,814 $3,521,925 $3,529,416 
Construction loans included in:
(1) - Commercial real estate loans$6,767 $14,877 $11,783 $19,360 $43,904 
(2) - Residential real estate loans18,751 16,253 17,252 19,059 20,838 



CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)

Three Months EndedSix Months Ended
June 30,March 31,December 31,September 30,June 30,June 30,June 30,
2022202220212021202120222021
Allowance for Credit Losses
Balance at beginning of period$17,280 $18,166 $18,751 $20,016 $24,076 $18,166 $24,549 
Charge-offs:
Commercial and industrial— (34)— — (211)(34)(245)
Commercial real estate(24)— (276)(392)(1,718)(24)(1,719)
Residential real estate(56)(50)(68)(18)(86)(106)(179)
Home equity(19)— (58)(47)(8)(19)(72)
Consumer(9)(23)(13)(3)(79)(32)(226)
DDA overdrafts(604)(631)(635)(633)(430)(1,235)(883)
Total charge-offs(712)(738)(1,050)(1,093)(2,532)(1,450)(3,324)
Recoveries:
Commercial and industrial32 59 31 69 25 91 71 
Commercial real estate25 53 27 18 15 78 179 
Residential real estate4 45 7 29 17 49 91 
Home equity3 17 6 58 3 20 26 
Consumer19 28 40 72 104 47 143 
DDA overdrafts364 406 354 307 308 770 721 
Total recoveries447 608 465 553 472 1,055 1,231 
Net charge-offs(265)(130)(585)(540)(2,060)(395)(2,093)
(Recovery of) provision for credit losses— (756)— (725)(2,000)(756)(2,440)
Balance at end of period$17,015 $17,280 $18,166 $18,751 $20,016 $17,015 $20,016 
Loans outstanding$3,566,758 $3,559,905 $3,543,814 $3,521,925 $3,529,416 
Allowance as a percent of loans outstanding0.48 %0.49 %0.51 %0.53 %0.57 %
Allowance as a percent of non-performing loans292.6 %331.3 %290.1 %243.1 %199.3 %
Average loans outstanding$3,559,713 $3,527,393 $3,522,272 $3,535,497 $3,541,165 $3,543,642 $3,563,356 
Net charge-offs (annualized) as a percent of average loans outstanding0.03 %0.01 %0.07 %0.06 %0.23 %0.02 %0.12 %






CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, Continued
(Unaudited) ($ in 000s)
June 30,March 31,December 31,September 30,June 30,
20222022202120212021
Nonaccrual Loans
Residential real estate$1,561 $1,786 $2,809 $3,634 $2,482 
Home equity54 99 40 67 81 
Commercial and industrial1,360 1,069 996 531 820 
Commercial real estate2,783 2,241 2,373 3,355 6,383 
Consumer— — — — — 
   Total nonaccrual loans5,758 5,195 6,218 7,587 9,766 
Accruing loans past due 90 days or more58 21 43 127 278 
   Total non-performing loans5,816 5,216 6,261 7,714 10,044 
Other real estate owned946 1,099 1,319 1,335 1,309 
   Total non-performing assets$6,762 $6,315 $7,580 $9,049 $11,353 
Non-performing assets as a percent of loans and other real estate owned0.19 %0.18 %0.21 %0.26 %0.32 %
Past Due Loans
Residential real estate$5,298 $4,976 $5,321 $5,258 $5,453 
Home equity282 505 618 688 523 
Commercial and industrial130 56 336 455 721 
Commercial real estate46 744 22 441 498 
Consumer49 32 60 35 12 
DDA overdrafts430 392 489 390 417 
   Total past due loans$6,235 $6,705 $6,846 $7,267 $7,624 
Total past due loans as a percent of loans outstanding0.17 %0.19 %0.19 %0.21 %0.22 %
Troubled Debt Restructurings ("TDRs")
   Residential real estate$16,022 $16,182 $16,943 $16,910 $17,788 
   Home equity1,649 1,694 1,784 1,822 1,920 
   Commercial and industrial381 397 414 430 — 
   Commercial real estate107 1,890 1,914 1,937 3,076 
   Consumer80 194 225 221 203 
     Total TDRs$18,239 $20,357 $21,280 $21,320 $22,987 





CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)

Three Months Ended
June 30, 2022March 31, 2022June 30, 2021
AverageYield/AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,730,617 $16,063 3.72 %$1,667,683 $15,596 3.79 %$1,652,165 $16,135 3.92 %
Commercial, financial, and agriculture (2)
1,785,511 16,421 3.69 %1,815,549 15,532 3.47 %1,839,478 16,158 3.52 %
Installment loans to individuals (2), (3)
43,585 631 5.81 %44,161 607 5.57 %49,522 713 5.77 %
Previously securitized loans (4)
***93 ******139 ******109 ***
Total loans3,559,713 33,208 3.74 %3,527,393 31,874 3.66 %3,541,165 33,115 3.75 %
Securities:
Taxable1,269,049 7,548 2.39 %1,207,333 6,223 2.09 %1,046,008 5,932 2.27 %
Tax-exempt (5)
215,603 1,526 2.84 %232,474 1,539 2.68 %244,233 1,633 2.68 %
Total securities1,484,652 9,074 2.45 %1,439,807 7,762 2.19 %1,290,241 7,565 2.35 %
Deposits in depository institutions441,239 781 0.71 %540,197 238 0.18 %628,158 162 0.10 %
Total interest-earning assets5,485,604 43,063 3.15 %5,507,397 39,874 2.94 %5,459,564 40,842 3.00 %
Cash and due from banks102,532 101,806 92,243 
Premises and equipment, net72,887 73,827 76,660 
Goodwill and intangible assets116,645 116,994 118,088 
Other assets256,354 217,662 206,709 
Less: Allowance for credit losses(17,755)(18,454)(23,701)
       Total assets$6,016,267 $5,999,232 $5,929,563 
Liabilities:
Interest-bearing demand deposits$1,156,200 $148 0.05 %$1,142,278 $130 0.05 %$1,069,896 $122 0.05 %
Savings deposits1,430,121 182 0.05 %1,384,460 175 0.05 %1,287,966 163 0.05 %
Time deposits (2)
1,004,356 999 0.40 %1,048,185 1,216 0.47 %1,181,953 2,175 0.74 %
Short-term borrowings288,031 123 0.17 %276,360 114 0.17 %305,134 125 0.16 %
   Total interest-bearing liabilities3,878,708 1,452 0.15 %3,851,283 1,635 0.17 %3,844,949 2,585 0.27 %
Noninterest-bearing demand deposits1,435,256 1,398,663 1,311,340 
Other liabilities85,075 74,084 72,940 
Stockholders' equity617,228 675,202 700,334 
Total liabilities and
stockholders' equity$6,016,267 $5,999,232 $5,929,563 
Net interest income$41,611 $38,239 $38,257 
Net yield on earning assets3.04 %2.82 %2.81 %
(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of net loan fees have been included in interest income:
Loan fees, net (includes PPP fees)$3 $298 $488 


(2) Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the Company's acquisitions:
Residential real estate$77 $90 $211 
Commercial, financial, and agriculture118 286 365 
Installment loans to individuals15 19 23 
Time deposits21 21 48 
$231 $416 $647 
(3) Includes the Company’s consumer and DDA overdrafts loan categories.
(4) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.



CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)

Six Months Ended
June 30, 2022June 30, 2021
AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,697,727 $31,659 3.76 %$1,675,222 $32,987 3.97 %
Commercial, financial, and agriculture (2)
1,801,999 31,952 3.58 %1,837,947 32,701 3.59 %
Installment loans to individuals (2), (3)
43,916 1,238 5.68 %50,187 1,426 5.73 %
Previously securitized loans (4)
***233 ******324 ***
Total loans3,543,642 65,082 3.70 %3,563,356 67,438 3.82 %
Securities:
Taxable1,238,361 13,770 2.24 %995,871 11,174 2.26 %
Tax-exempt (5)
223,992 3,065 2.76 %241,924 3,220 2.68 %
Total securities1,462,353 16,835 2.32 %1,237,795 14,394 2.35 %
Deposits in depository institutions490,445 1,020 0.42 %571,130 280 0.10 %
Total interest-earning assets5,496,440 82,937 3.04 %5,372,281 82,112 3.08 %
Cash and due from banks102,171 85,998 
Premises and equipment, net73,354 76,748 
Goodwill and intangible assets116,818 118,270 
Other assets237,115 212,051 
Less: Allowance for loan losses(18,103)(24,302)
       Total assets$6,007,795 $5,841,046 
Liabilities:
Interest-bearing demand deposits$1,149,277 $278 0.05 %$1,039,260 $246 0.05 %
Savings deposits1,407,416 357 0.05 %1,254,752 346 0.06 %
Time deposits (2)
1,026,149 2,214 0.44 %1,208,925 5,149 0.86 %
Short-term borrowings282,228 238 0.17 %297,990 243 0.16 %
   Total interest-bearing liabilities3,865,070 3,087 0.16 %3,800,927 5,984 0.32 %
Noninterest-bearing demand deposits1,417,060 1,254,938 
Other liabilities79,610 81,273 
Stockholders' equity646,055 703,908 
Total liabilities and
stockholders' equity$6,007,795 $5,841,046 
Net interest income$79,850 $76,128 
Net yield on earning assets2.93 %2.86 %
(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of loan fees have been included in interest income:
Loan fees, net (includes PPP fees)$301 $1,323 


(2) Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the Company's acquisitions:
Residential real estate$167 $317 
Commercial, financial, and agriculture404 690 
Installment loans to individuals34 51 
Time deposits41 97 
$646 $1,155 
(3) Includes the Company’s consumer and DDA overdrafts loan categories.
(4) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.



CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations
(Unaudited) ($ in 000s, except per share data)
Three Months EndedSix Months Ended
June 30,March 31,December 31,September 30,June 30,June 30,June 30,
2022202220212021202120222021
Net Interest Income/Margin
Net interest income ("GAAP")$41,290 $37,916 $40,631 $39,488 $37,914 $79,206 $75,454 
Taxable equivalent adjustment321 323 325 334 343 644 674 
Net interest income, fully taxable equivalent
$41,611 $38,239 $40,956 $39,822 $38,257 $79,850 $76,128 
Average interest earning assets$5,485,604 $5,507,397 $5,521,386 $5,462,410 $5,459,564 $5,496,440 $5,372,281 
Net Interest Margin3.04 %2.82 %2.94 %2.89 %2.81 %2.93 %2.86 %
Accretion related to fair value adjustments(0.02)%(0.03)%(0.03)%(0.04)%(0.05)%(0.02)%(0.04)%
Net Interest Margin (excluding accretion)
3.02 %2.79 %2.91 %2.85 %2.76 %2.91 %2.81 %
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")9.48 %10.52 %11.34 %11.37 %11.78 %
Effect of goodwill and other intangibles, net(1.72)%(1.77)%(1.76)%(1.78)%(1.80)%
Tangible common equity to tangible assets
7.76 %8.75 %9.58 %9.59 %9.98 %