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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): October 18, 2022

chco-20221018_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 October 18, 2022, City Holding Company ("the Company") issued a news release, attached as Exhibit 99.1, announcing the Company's earnings results for the third quarter ended September 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 October 18, 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: October 18, 2022City Holding Company
By:/s/ David L. Bumgarner
David L. Bumgarner
Executive Vice President & Chief Financial Officer

-2-

Filed by City Holding Company
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934








NEWS RELEASE

For Immediate Release
October 18, 2022


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



City Holding Company Announces Third Quarter Results

Charleston, West Virginia – City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $5.9 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $27.4 million and diluted earnings of $1.83 per share for the quarter ended September 30, 2022. For the third quarter of 2022, the Company achieved a return on assets of 1.83% and a return on tangible equity of 21.8%.

Net Interest Income

The Company’s net interest income increased from $41.3 million during the second quarter of 2022 to $48.8 million during the third quarter of 2022. The Company’s tax equivalent net interest income increased from $41.6 million for the second quarter of 2022 to $49.1 million for the third quarter of 2022. Net interest income increased by $4.7 million and $1.5 million, respectively, due to an increase in loan (net of loan fees and accretion) and investment yields of 47 basis points and 35 basis points, respectively, due to recent increases in the Federal Funds rate. In addition, the yield on deposits in depository institutions also increased by 139 basis points which increased net interest income by $1.0 million. These increases were partially offset by an increase in the cost of interest bearing liabilities (6 basis points) which decreased net interest income by $0.6 million. The Company’s reported net interest margin increased from 3.04% for the second quarter of 2022 to 3.57% for the third quarter of 2022.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased modestly from 0.19%, or $6.8 million, at June 30, 2022 to 0.18%, or $6.4 million, at September 30, 2022. Total past due loans decreased from $6.2 million, or 0.17% of total loans outstanding, at June 30, 2022 to $5.0 million, or 0.14% of total loans outstanding, at September 30, 2022.



As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses (“ACL”), the Company recorded a provision for credit losses of $0.7 million in the third quarter of 2022, compared to a recovery of credit losses of $0.7 million for the comparable period in 2021 and no provision for credit losses for the second quarter of 2022. The provision for credit losses in the third quarter was a result of net charge-offs and loan growth.

Non-interest Income

Non-interest income was $18.2 million for the third quarter of 2022 as compared to $17.9 million for the third quarter of 2021. During the third quarter of 2021, the Company reported $0.1 million of unrealized fair value gains on the Company’s equity securities. Exclusive of these gains, non-interest income increased from $17.8 million for the third quarter of 2021 to $18.2 million for the third quarter of 2022. This increase was largely attributable to higher service charges ($0.8 million, or 11.6%) and bankcard revenues ($0.3 million, or 3.8%). These increases were partially offset by a decrease in other income ($0.6 million).

Non-interest Expenses

Non-interest expenses increased $2.3 million (8.0%), from $29.2 million in the third quarter of 2021 to $31.5 million in the third quarter of 2022. This increase was primarily due to an increase in salaries and employee benefits of $2.1 million due to increased health insurance, increased incentive compensation and higher salary adjustments during 2022.

Balance Sheet Trends

Loans increased $62.0 million (1.7%) from June 30, 2022 to September 30, 2022, to $3.63 billion. Residential real estate loans increased $27.8 million (1.7%), commercial real estate loans increased $16.2 million (1.2%), commercial and industrial loans increased $15.3 million (4.2%), and home equity loans increased $5.1 million (4.1%). These increases were partially offset by a decrease in consumer loans of $2.7 million.

Total average depository balances decreased $23.7 million, or 0.5%, from the quarter ended June 30, 2022 to the quarter ended September 30, 2022. Average time deposit balances decreased $39.9 million and average interest-bearing demand deposit balances decreased $5.1 million. These increases were partially offset by an increase in noninterest-bearing demand deposit balances of $19.9 million.

Income Tax Expense

The Company’s effective income tax rate for the third quarter of 2022 was 21.3% compared to 20.8% for the year ended December 31, 2021, and 21.6% for the quarter ended September 30, 2021.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 73.2% and the loan to asset ratio was 61.0% at September 30, 2022. The Company maintained investment securities totaling 25.5% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 67.6% of assets at September 30, 2022. Time deposits fund 15.8% of assets at September 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 $432 million at September 30, 2022. Due primarily to unrealized security losses during the nine months ended September 30, 2022, the Company’s tangible equity ratio decreased from 9.6% at December 31, 2021 to 7.4% at September 30, 2022. However, unrealized security losses are not incorporated into measures of regulatory capital. At September 30, 2022, City National Bank’s Leverage Ratio was 9.05%, its Common Equity Tier I ratio was 14.68%, its Tier I Capital ratio was 14.68%, and its Total Risk-Based Capital ratio was 15.07%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On September 28, 2022, the Board of Directors of the Company approved a quarterly cash dividend of $0.65 per share payable October 31, 2022, to shareholders of record as of October 14, 2022. This represents an 8.3% increase from the $0.60 per share dividend paid on July 29, 2022. During the quarter ended September 30, 2022, the Company repurchased 9,000 common shares at a weighted average price of $80.24 as part of a one million share repurchase plan authorized by the Board of Directors in May 2022. As of September 30, 2022, the Company could repurchase approximately 886,000 additional shares under the plan.

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 credit 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 September 30, 2022 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary September 30, 2022 results and will adjust the amounts if necessary.



CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2022202220212021202120222021
Earnings
Net Interest Income (FTE)$49,108 $41,611 $38,239 $40,956 $39,822 $128,961 $115,950 
Net Income available to common shareholders27,374 22,683 21,342 23,386 22,732 71,408 64,694 
Per Share Data
Earnings per share available to common shareholders:
   Basic$1.84 $1.51 $1.41 $1.54 $1.47 $4.75 $4.13 
   Diluted1.83 1.51 1.41 1.54 1.47 4.75 4.13 
Weighted average number of shares (in thousands):
   Basic14,776 14,888 14,974 15,026 15,279 14,878 15,501 
   Diluted14,800 14,909 15,002 15,056 15,302 14,901 15,526 
Period-end number of shares (in thousands)14,856 14,864 15,045 15,062 15,192 14,856 15,192 
Cash dividends declared$0.65 $0.60 $0.6 $0.6 $0.58 $1.85 $1.74 
Book value per share (period-end)36.91 39.83 42.03 45.22 44.58 36.91 44.58 
Tangible book value per share (period-end)29.09 31.99 34.27 37.44 36.85 29.09 36.85 
Market data:
   High closing price$90.24 $83.07 $85.99 $83.14 $79.99 $90.24 $87.41 
   Low closing price78.40 73.88 76.82 76.52 72.29 73.88 69.05 
   Period-end closing price88.69 79.88 78.70 81.79 77.91 88.69 77.91 
   Average daily volume (in thousands)58 87 59 52 53 68 59 
Treasury share activity:
Treasury shares repurchased (in thousands)9 208 38 131 337 255 629 
      Average treasury share repurchase price
$80.24 $78.33 $78.09 $78.93 $75.65 $78.36 $76.85 
Key Ratios (percent)
Return on average assets1.83 %1.51 %1.42 %1.56 %1.53 %1.59 %1.47 %
Return on average tangible equity21.8 %18.1 %15.3 %16.7 %15.7 %18.3 %14.8 %


Yield on interest earning assets3.72 %3.15 %2.94 %3.08 %3.04 %3.27 %3.07 %
Cost of interest bearing liabilities0.21 %0.15 %0.17 %0.19 %0.22 %0.18 %0.28 %
Net Interest Margin3.57 %3.04 %2.82 %2.94 %2.89 %3.14 %2.87 %
Non-interest income as a percent of total revenue27.2 %30.9 %32.4 %30.2 %31.1 %29.5 %31.0 %
Efficiency Ratio46.3 %50.5 %51.7 %48.3 %50.0 %49.3 %52.3 %
Price/Earnings Ratio (a)12.08 13.23 13.93 13.27 13.22 13.99 14.14 
Capital (period-end)
Average Shareholders' Equity to Average Assets10.32 %10.26 %11.25 %11.25 %11.69 %
Tangible equity to tangible assets7.41 %7.76 %8.75 %9.58 %9.59 %
Consolidated City Holding Company risk based capital ratios (b):
   CET I15.82 %15.85 %16.18 %16.08 %16.11 %
   Tier I15.82 %15.85 %16.18 %16.08 %16.11 %
   Total16.22 %16.26 %16.60 %16.51 %16.56 %
   Leverage9.74 %9.42 %9.58 %9.44 %9.46 %
City National Bank risk based capital ratios (b):
   CET I14.68 %14.80 %14.82 %14.35 %14.76 %
   Tier I14.68 %14.80 %14.82 %14.35 %14.76 %
   Total15.07 %15.21 %15.24 %14.78 %15.21 %
   Leverage9.05 %8.81 %8.80 %8.45 %8.73 %
Other (period-end)
Branches94 94 94 94 94 
FTE903 915 897 905 921 
   Assets per FTE (in thousands)$6,588 $6,825 $6,703 $6,637 $6,463 
   Deposits per FTE (in thousands)5,492 5,621 5,574 5,445 5,308 
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) September 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 EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2022202220222021202120222021
Interest Income
   Interest and fees on loans$38,493 $33,208 $31,874 $35,277 $33,961 $103,575 $101,399 
   Interest on investment securities:
     Taxable9,556 7,547 6,223 5,753 6,144 23,327 17,318 
     Tax-exempt1,228 1,205 1,216 1,226 1,257 3,650 3,801 
   Interest on deposits in depository institutions
1,530 782 238 217 196 2,549 476 
Total Interest Income50,807 42,742 39,551 42,473 41,558 133,101 122,994 
Interest Expense
   Interest on deposits1,585 1,328 1,521 1,710 1,955 4,433 7,695 
   Interest on short-term borrowings
440 124 114 132 115 677 357 
Total Interest Expense2,025 1,452 1,635 1,842 2,070 5,110 8,052 
Net Interest Income48,782 41,290 37,916 40,631 39,488 127,991 114,942 
Provision for (Recovery of) credit losses730 — (756)— (725)(26)(3,165)
Net Interest Income After Provision for (Recovery of) Credit Losses48,052 41,290 38,672 40,631 40,213 128,017 118,107 
Non-Interest Income
Net gains on sale of investment securities— — — — — — 312 
Unrealized gains (losses) recognized on equity securities still held1 (601)(723)52 93 (1,322)452 
   Service charges7,487 7,067 6,725 7,057 6,706 21,281 18,482 
   Bankcard revenue7,052 7,062 6,444 6,762 6,791 20,558 20,225 
   Trust and investment management fee income
2,158 2,100 2,197 2,198 2,172 6,455 6,217 
   Bank owned life insurance754 978 2,014 748 747 3,746 3,147 
   Other income792 1,243 791 799 1,438 2,825 3,190 
Total Non-Interest Income18,244 17,849 17,448 17,616 17,947 53,543 52,025 
Non-Interest Expense
   Salaries and employee benefits17,398 16,413 15,577 15,299 15,321 49,386 46,551 
   Occupancy related expense2,664 2,620 2,709 2,429 2,507 7,993 7,654 
   Equipment and software related expense
2,949 2,732 2,769 2,733 2,554 8,452 7,753 
   FDIC insurance expense416 409 435 400 396 1,259 1,183 
   Advertising854 951 798 582 804 2,603 2,509 
   Bankcard expenses1,405 1,665 1,606 1,576 1,549 4,676 4,879 
   Postage, delivery, and statement mailings
578 551 636 590 573 1,765 1,733 


   Office supplies466 427 410 378 406 1,303 1,169 
   Legal and professional fees532 525 527 405 610 1,584 1,874 
   Telecommunications651 754 584 702 790 1,988 2,156 
   Repossessed asset (gains) losses, net of expenses(3)(32)40 (29)(108)4 (28)
   Other expenses3,591 3,674 3,436 3,559 3,776 10,701 11,128 
Total Non-Interest Expense31,501 30,689 29,527 28,624 29,178 91,714 88,561 
Income Before Income Taxes34,795 28,450 26,593 29,623 28,982 89,846 81,571 
   Income tax expense7,421 5,767 5,251 6,237 6,250 18,438 16,877 
Net Income Available to Common Shareholders$27,374 $22,683 $21,342 $23,386 $22,732 $71,408 $64,694 
Distributed earnings allocated to common shareholders$9,564 $8,837 $8,943 $8,949 $8,726 $27,220 $26,177 
Undistributed earnings allocated to common shareholders17,555 13,643 12,199 14,211 13,786 43,509 37,899 
Net earnings allocated to common shareholders$27,119 $22,480 $21,142 $23,160 $22,512 $70,729 $64,076 
Average common shares outstanding14,776 14,888 14,974 15,026 15,279 14,878 15,501 
Shares for diluted earnings per share14,800 14,909 15,002 15,056 15,302 14,901 15,526 
Basic earnings per common share1.841.511.411.541.474.754.13
Diluted earnings per common share1.831.511.411.541.474.754.13



CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Assets
Cash and due from banks$65,051 $90,449 $100,877 $101,804 $103,841 
Interest-bearing deposits in depository institutions233,302 606,530 497,171 532,827 535,708 
Cash and cash equivalents298,353 696,979 598,048 634,631 639,549 
Investment securities available-for-sale, at fair value1,489,392 1,497,227 1,409,513 1,408,165 1,372,077 
Other securities24,372 24,383 24,785 25,531 25,497 
Total investment securities1,513,764 1,521,610 1,434,298 1,433,696 1,397,574 
Gross loans3,628,752 3,566,758 3,559,905 3,543,814 3,521,925 
Allowance for credit losses(17,011)(17,015)(17,280)(18,166)(18,751)
Net loans3,611,741 3,549,743 3,542,625 3,525,648 3,503,174 
Bank owned life insurance121,283 120,528 120,522 120,978 120,238 
Premises and equipment, net71,686 72,388 73,067 74,071 75,156 
Accrued interest receivable17,256 16,342 16,101 15,627 16,224 
Net deferred tax assets49,888 30,802 18,001 63 90 
Intangible assets116,081 116,428 116,774 117,121 117,489 
Other assets147,716 118,375 92,331 81,860 82,419 
Total Assets$5,947,768 $6,243,195 $6,011,767 $6,003,695 $5,951,913 
Liabilities
Deposits:
   Noninterest-bearing$1,429,281 $1,531,660 $1,357,266 $1,373,125 $1,311,464 
   Interest-bearing:
   Demand deposits1,160,970 1,189,056 1,191,492 1,135,848 1,139,033 
   Savings deposits1,427,785 1,435,645 1,425,528 1,347,448 1,332,910 
   Time deposits939,769 985,567 1,024,559 1,068,915 1,104,069 
Total deposits4,957,805 5,141,928 4,998,845 4,925,336 4,887,476 
Short-term borrowings
   Customer repurchase agreements304,807 402,368 288,483 312,458 296,642 
Net deferred tax liabilities— — — — — 
Other liabilities136,868 106,906 92,009 84,796 90,499 
Total Liabilities5,399,480 5,651,202 5,379,337 5,322,590 5,274,617 
Stockholders' Equity
Preferred stock— — — — — 
Common stock47,619 47,619 47,619 47,619 47,619 
Capital surplus170,138 169,557 170,206 170,942 170,300 
Retained earnings685,657 667,933 654,138 641,826 627,463 


Cost of common stock in treasury(209,644)(209,133)(194,819)(193,542)(183,303)
Accumulated other comprehensive (loss) income:
Unrealized (loss) gain on securities available-for-sale(141,997)(80,498)(41,229)17,745 20,878 
Underfunded pension liability
(3,485)(3,485)(3,485)(3,485)(5,661)
Total Accumulated Other Comprehensive (Loss) Income(145,482)(83,983)(44,714)14,260 15,217 
Total Stockholders' Equity548,288 591,993 632,430 681,105 677,296 
Total Liabilities and Stockholders' Equity$5,947,768 $6,243,195 $6,011,767 $6,003,695 $5,951,913 
Regulatory Capital
Total CET 1 capital$582,213 $564,158 $565,048 $555,532 $550,426 
Total tier 1 capital582,213 564,158 565,048 555,532 550,426 
Total risk-based capital596,708 578,657 579,807 570,336 565,712 
Total risk-weighted assets3,679,511 3,558,249 3,492,920 3,453,893 3,417,020 




CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Commercial and industrial$375,735 $360,481 $337,384 $346,184 $353,046 
1-4 Family109,710 108,765 108,424 107,873 108,913 
Hotels355,001 337,910 314,902 311,315 297,341 
Multi-family186,440 203,856 209,359 215,677 215,307 
Non Residential Non-Owner Occupied569,369 551,240 637,092 639,818 664,365 
Non Residential Owner Occupied177,673 180,188 200,180 204,233 205,579 
Commercial real estate (1)
1,398,193 1,381,959 1,469,957 1,478,916 1,491,505 
Residential real estate (2)
1,678,770 1,651,005 1,588,860 1,548,965 1,506,572 
Home equity130,837 125,742 121,460 122,345 124,806 
Consumer41,902 44,580 39,778 40,901 43,296 
DDA Overdrafts3,315 2,991 2,466 6,503 2,700 
Gross Loans$3,628,752 $3,566,758 $3,559,905 $3,543,814 $3,521,925 
Construction loans included in:
(1) - Commercial real estate loans$4,125 $6,767 $14,877 $11,783 $19,360 
(2) - Residential real estate loans19,333 18,751 16,253 17,252 19,059 



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

Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2022202220222021202120222021
Allowance for Credit Losses
Balance at beginning of period$17,015 $17,280 $18,166 $18,751 $20,016 $18,166 $24,549 
Charge-offs:
Commercial and industrial(411)— (34)— — (445)(245)
Commercial real estate— (24)— (276)(392)(24)(2,111)
Residential real estate(93)(56)(50)(68)(18)(199)(197)
Home equity(71)(19)— (58)(47)(90)(119)
Consumer(16)(9)(23)(13)(3)(48)(229)
DDA overdrafts(719)(604)(631)(635)(633)(1,954)(1,516)
Total charge-offs(1,310)(712)(738)(1,050)(1,093)(2,760)(4,417)
Recoveries:
Commercial and industrial149 32 59 31 69 240 140 
Commercial real estate9 25 53 27 18 87 197 
Residential real estate1 4 45 7 29 50 120 
Home equity2 3 17 6 58 22 84 
Consumer29 19 28 40 72 76 215 
DDA overdrafts383 364 406 354 307 1,153 1,028 
Total recoveries573 447 608 465 553 1,628 1,784 
Net charge-offs(737)(265)(130)(585)(540)(1,132)(2,633)
Provision for (recovery of) credit losses730 — (756)— (725)(26)(3,165)
Balance at end of period$17,008 $17,015 $17,280 $18,166 $18,751 $17,008 $18,751 
Loans outstanding$3,628,752 $3,566,758 $3,559,905 $3,543,814 $3,521,925 
Allowance as a percent of loans outstanding0.47 %0.48 %0.49 %0.51 %0.53 %
Allowance as a percent of non-performing loans320.5 %292.6 %331.3 %290.1 %243.1 %
Average loans outstanding$3,596,523 $3,559,713 $3,527,393 $3,522,272 $3,535,497 $3,561,463 $3,553,966 
Net charge-offs (annualized) as a percent of average loans outstanding0.08 %0.03 %0.01 %0.07 %0.06 %0.04 %0.10 %






CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, Continued
(Unaudited) ($ in 000s)
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Nonaccrual Loans
Residential real estate$2,089 $1,561 $1,786 $2,809 $3,634 
Home equity140 54 99 40 67 
Commercial and industrial785 1,360 1,069 996 531 
Commercial real estate2,293 2,783 2,241 2,373 3,355 
Consumer— — — — — 
   Total nonaccrual loans5,307 5,758 5,195 6,218 7,587 
Accruing loans past due 90 days or more— 58 21 43 127 
   Total non-performing loans5,307 5,816 5,216 6,261 7,714 
Other real estate owned1,071 946 1,099 1,319 1,335 
   Total non-performing assets$6,378 $6,762 $6,315 $7,580 $9,049 
Non-performing assets as a percent of loans and other real estate owned0.18 %0.19 %0.18 %0.21 %0.26 %
Past Due Loans
Residential real estate$3,452 $5,298 $4,976 $5,321 $5,258 
Home equity521 282 505 618 688 
Commercial and industrial221 130 56 336 455 
Commercial real estate221 46 744 22 441 
Consumer27 49 32 60 35 
DDA overdrafts561 430 392 489 390 
   Total past due loans$5,003 $6,235 $6,705 $6,846 $7,267 
Total past due loans as a percent of loans outstanding0.14 %0.17 %0.19 %0.19 %0.21 %
Troubled Debt Restructurings ("TDRs")
   Residential real estate$15,657 $16,022 $16,182 $16,943 $16,910 
   Home equity1,614 1,649 1,694 1,784 1,822 
   Commercial and industrial354 381 397 414 430 
   Commercial real estate104 107 1,890 1,914 1,937 
   Consumer68 80 194 225 221 
     Total TDRs$17,797 $18,239 $20,357 $21,280 $21,320 





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

Three Months Ended
September 30, 2022June 30, 2022September 30, 2021
AverageYield/AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,792,365 $17,640 3.90 %$1,730,617 $16,063 3.72 %$1,648,921 $15,813 3.80 %
Commercial, financial, and agriculture (2)
1,759,567 20,092 4.53 %1,785,511 16,421 3.69 %1,836,604 17,344 3.75 %
Installment loans to individuals (2), (3)
44,591 683 6.08 %43,585 631 5.81 %49,972 714 5.67 %
Previously securitized loans (4)
***78 ******93 ******91 ***
Total loans3,596,523 38,493 4.25 %3,559,713 33,208 3.74 %3,535,497 33,962 3.81 %
Securities:
Taxable1,359,207 9,557 2.79 %1,269,049 7,548 2.39 %1,136,519 6,144 2.14 %
Tax-exempt (5)
215,219 1,555 2.87 %215,603 1,526 2.84 %245,551 1,590 2.57 %
Total securities1,574,426 11,112 2.80 %1,484,652 9,074 2.45 %1,382,070 7,734 2.22 %
Deposits in depository institutions289,460 1,529 2.10 %441,239 781 0.71 %544,843 196 0.14 %
Total interest-earning assets5,460,409 51,134 3.72 %5,485,604 43,063 3.15 %5,462,410 41,892 3.04 %
Cash and due from banks81,202 102,532 101,058 
Premises and equipment, net72,196 72,887 75,956 
Goodwill and intangible assets116,297 116,645 117,719 
Other assets278,527 256,354 220,420 
Less: Allowance for credit losses(17,224)(17,755)(20,407)
       Total assets$5,991,407 $6,016,267 $5,957,156 
Liabilities:
Interest-bearing demand deposits$1,151,122 $272 0.09 %$1,156,200 $148 0.05 %$1,093,243 $127 0.05 %
Savings deposits1,431,591 358 0.10 %1,430,121 182 0.05 %1,315,462 169 0.05 %
Time deposits (2)
964,447 956 0.39 %1,004,356 999 0.40 %1,126,553 1,659 0.58 %
Short-term borrowings270,310 440 0.65 %288,031 123 0.17 %282,722 115 0.16 %
   Total interest-bearing liabilities3,817,470 2,026 0.21 %3,878,708 1,452 0.15 %3,817,980 2,070 0.22 %
Noninterest-bearing demand deposits1,455,123 1,435,256 1,356,745 
Other liabilities100,303 85,075 86,263 
Stockholders' equity618,511 617,228 696,168 
Total liabilities and
stockholders' equity$5,991,407 $6,016,267 $5,957,156 
Net interest income$49,108 $41,611 $39,822 
Net yield on earning assets3.57 %3.04 %2.89 %
(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)$308 $3 $1,120 


(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$64 $77 $154 
Commercial, financial, and agriculture103 118 265 
Installment loans to individuals7 15 21 
Time deposits21 21 48 
$195 $231 $488 
(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)

Nine Months Ended
September 30, 2022September 30, 2021
AverageYield/AverageYield/
BalanceInterestRateBalanceInterestRate
Assets:
Loan portfolio (1):
Residential real estate (2)
$1,728,557 $49,299 3.81 %$1,669,324 $48,801 3.91 %
Commercial, financial, and agriculture (2)
1,788,784 52,044 3.89 %1,833,744 50,044 3.65 %
Installment loans to individuals (2), (3)
44,122 1,921 5.82 %50,898 2,140 5.62 %
Previously securitized loans (4)
***311 ******414 ***
Total loans3,561,463 103,575 3.89 %3,553,966 101,399 3.81 %
Securities:
Taxable1,279,086 23,327 2.44 %1,043,269 17,318 2.22 %
Tax-exempt (5)
221,035 4,620 2.79 %243,146 4,811 2.65 %
Total securities1,500,121 27,947 2.49 %1,286,415 22,129 2.30 %
Deposits in depository institutions422,714 2,549 0.81 %562,272 474 0.11 %
Total interest-earning assets5,484,298 134,071 3.27 %5,402,653 124,002 3.07 %
Cash and due from banks95,105 91,073 
Premises and equipment, net72,964 76,481 
Goodwill and intangible assets116,643 118,084 
Other assets251,071 214,872 
Less: Allowance for loan losses(17,807)(22,989)
       Total assets$6,002,274 $5,880,174 
Liabilities:
Interest-bearing demand deposits$1,149,899 $550 0.06 %$1,057,452 $373 0.05 %
Savings deposits1,415,563 715 0.07 %1,275,211 516 0.05 %
Time deposits (2)
1,005,356 3,168 0.42 %1,181,166 6,806 0.77 %
Short-term borrowings278,211 677 0.33 %292,845 357 0.16 %
   Total interest-bearing liabilities3,849,029 5,110 0.18 %3,806,674 8,052 0.28 %
Noninterest-bearing demand deposits1,429,887 1,289,247 
Other liabilities86,585 82,953 
Stockholders' equity636,773 701,300 
Total liabilities and
stockholders' equity$6,002,274 $5,880,174 
Net interest income$128,961 $115,950 
Net yield on earning assets3.14 %2.87 %
(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)609 2,443 


(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$231 $472 
Commercial, financial, and agriculture507 956 
Installment loans to individuals41 72 
Time deposits62 145 
841 1,645 
(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 EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
2022202220212021202120222021
Net Interest Income/Margin
Net interest income ("GAAP")$48,782 $41,290 $37,916 $40,631 $39,488 $127,991 $114,942 
Taxable equivalent adjustment326 321 323 325 334 970 1,008 
Net interest income, fully taxable equivalent
$49,108 $41,611 $38,239 $40,956 $39,822 $128,961 $115,950 
Average interest earning assets$5,460,409 $5,485,604 $5,507,397 $5,521,386 $5,462,410 $5,484,298 $5,402,653 
Net Interest Margin3.57 %3.04 %2.82 %2.94 %2.89 %3.14 %2.87 %
Accretion related to fair value adjustments(0.01)%(0.02)%(0.03)%(0.03)%(0.04)%(0.02)%(0.04)%
Net Interest Margin (excluding accretion)
3.56 %3.02 %2.79 %2.91 %2.85 %3.12 %2.83 %
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")9.22 %9.48 %10.52 %11.34 %11.37 %
Effect of goodwill and other intangibles, net(1.81)%(1.72)%(1.77)%(1.76)%(1.78)%
Tangible common equity to tangible assets
7.41 %7.76 %8.75 %9.58 %9.59 %