City Holding(CHCO) - 2024 Q4 - Annual Results

Financial Performance - Record net income of $117.1 million and diluted earnings of$ 7.89 per share for the year ended December 31, 2024, with a return on assets of 1.85% and return on tangible equity of 21.2%[2] - Net Income available to common shareholders for the twelve months ended December 31, 2024, was $117.101 million, up from$ 114.365 million in 2023[28] - Earnings per share (Basic) for the twelve months ended December 31, 2024, was $7.91, compared to$ 7.62 in 2023[28] - Return on average assets for the twelve months ended December 31, 2024, was 1.85%, slightly down from 1.87% in 2023[29] - Net Income Available to Common Shareholders for the twelve months ended December 31, 2024, was $117.101 million, up from$ 114.365 million in 2023[32] - Basic Earnings Per Common Share for the twelve months ended December 31, 2024, was $7.91, compared to$ 7.62 in 2023[32] - Diluted Earnings Per Common Share for the twelve months ended December 31, 2024, was $7.89, compared to$ 7.61 in 2023[32] Net Interest Income and Margin - Net interest income increased by $1.0 million (0.4%) to$ 220.2 million for the year ended December 31, 2024, driven by loan yield increases and higher loan balances[4] - Net Interest Income for the twelve months ended December 31, 2024, was $221.108 million, compared to$ 220.266 million in the same period in 2023[28] - Net Interest Margin for the twelve months ended December 31, 2024, was 3.86%, compared to 4.01% in 2023[29] - Net Interest Income for the twelve months ended December 31, 2024, was $220.237 million, slightly up from$ 219.241 million in 2023[31] - Net interest income for the three months ended December 31, 2024, was $55,790,000, slightly down from$ 55,823,000 in the previous quarter[38] - The net yield on earning assets decreased to 3.75% in December 2024 from 3.98% in December 2023[38] - Net interest income for 2024 was $221,108K, slightly higher than$ 220,266K in 2023[41] Non-Interest Income and Expenses - Non-interest income increased by $0.9 million (1.2%) to$ 76.0 million for 2024, driven by higher trust and investment management fees and service charges[11] - Non-interest expenses increased by $3.7 million (2.6%) to$ 147.2 million for 2024, primarily due to higher salaries and employee benefits[15] - Total Non-Interest Income for the twelve months ended December 31, 2024, was $73.334 million, compared to$ 70.629 million in 2023, showing a 3.8% increase[31] - Total Non-Interest Expense for the twelve months ended December 31, 2024, was $147.235 million, up from$ 143.521 million in 2023[32] Loans and Deposits - Loans increased by $148.9 million (3.6%) to$ 4.27 billion at December 31, 2024, with significant growth in commercial real estate and home equity loans[17] - Period-end deposit balances increased by $209.9 million (4.3%) to$ 5.04 billion at December 31, 2024, with growth in time deposits and interest-bearing demand deposits[18] - Total Assets as of December 31, 2024, were $6.459 billion, compared to$ 6.168 billion in 2023, indicating a 4.7% growth[33] - Total Deposits as of December 31, 2024, were $5.144 billion, up from$ 4.934 billion in 2023, reflecting a 4.3% increase[33] - Gross Loans as of December 31, 2024, were $4.275 billion, compared to$ 4.126 billion in 2023, showing a 3.6% growth[33] - Gross Loans increased from $4.125923 billion in December 2023 to$ 4.274776 billion in December 2024[35] - Commercial and industrial loans decreased from $426.950 million in December 2023 to$ 419.838 million in December 2024[35] - Residential real estate loans increased from $1.788150 billion in December 2023 to$ 1.823610 billion in December 2024[35] - Total loans averaged $4,215,962,000 in December 2024, with a yield of 5.82%, compared to$ 4,045,889,000 and a yield of 5.66% in December 2023[38] - Total loans increased to $4,133,843K with a yield of 5.84%, up from$ 3,900,913K and 5.45% in 2023[41] - Commercial real estate loans accounted for 13.90% of total loans, with an average balance of $549K[45] - Residential real estate loans yielded 5.07%, up from 4.64% in 2023[41] - Commercial, financial, and agriculture loans yielded 6.56%, compared to 6.24% in 2023[41] Capital and Equity - The Company's tangible equity ratio increased from 8.6% at December 31, 2023 to 9.1% at December 31, 2024, driven by net income and dividend adjustments[22] - City National's regulatory capital ratios remain well above required levels, with a Common Equity Tier I ratio of 13.6% and Total Risk-Based Capital ratio of 14.1% at December 31, 2024[23] - CET I capital ratio for City Holding Company as of December 31, 2024, was estimated at 16.51%, up from 15.70% in 2023[29] - Total risk-based capital ratio for City National Bank as of December 31, 2024, was estimated at 14.05%, compared to 14.32% in 2023[29] - Total Stockholders' Equity decreased from$ 741.299 million in September 2024 to $730.664 million in December 2024[34] - Total CET 1 capital increased from$ 627.579 million in December 2023 to $688.707 million in December 2024[34] - Tangible common equity to tangible assets ratio stood at 9.06% at the end of 2024[44] Share Repurchases and Trading - The Company repurchased 179,000 common shares at a weighted average price of$ 100.24 per share in 2024, with an additional 821,000 shares available under the current repurchase plan[24] - The company repurchased 179,000 treasury shares in 2024, significantly lower than the 667,000 shares repurchased in 2023[29] - The average daily trading volume for the twelve months ended December 31, 2024, was 57,000 shares, down from 72,000 shares in 2023[29] Credit Quality and Loan Losses - Nonperforming assets ratio increased from 0.21% ( $8.6 million) at December 31, 2023 to 0.35% ($ 15.0 million) at December 31, 2024, primarily due to a commercial loan charge-off[8] - Allowance for Loan Losses as a percentage of loans outstanding remained stable at 0.51% in December 2024[36] - Net charge-offs (annualized) as a percentage of average loans outstanding were 0.02% in December 2024[36] - Total charge-offs for the twelve months ended December 2024 were $5.055 million[36] - Total recoveries for the twelve months ended December 2024 were$ 2.412 million[36] - Provision for credit losses for the twelve months ended December 2024 was $1.820 million[36] - Total non-performing loans increased to$ 14,211,000 as of December 31, 2024, up from $7,828,000 in December 2023[37] - Non-performing assets as a percent of loans and other real estate owned rose to 0.35% in December 2024 from 0.21% in December 2023[37] - Total past due loans decreased to$ 8,818,000 in December 2024 from $10,937,000 in December 2023[37] Interest Rates and Yields - Total Interest Income for the twelve months ended December 31, 2024, was$ 306.429 million, compared to $271.264 million in 2023, reflecting a 13% increase[31] - Total securities averaged$ 1,488,465,000 in December 2024, with a yield of 3.94%, up from $1,347,652,000 and a yield of 3.94% in December 2023[38] - Interest-bearing demand deposits averaged$ 1,367,370,000 in December 2024, with a yield of 1.15%, compared to $1,299,683,000 and a yield of 1.06% in December 2023[38] - Time deposits averaged$ 1,225,654,000 in December 2024, with a yield of 3.67%, up from $1,025,870,000 and a yield of 2.57% in December 2023[38] - Total interest-bearing liabilities averaged$ 4,322,953,000 in December 2024, with a cost of 2.14%, compared to $4,013,220,000 and a cost of 1.70% in December 2023[38] - Total interest-earning assets grew to$ 5,731,523K with a yield of 5.36%, compared to $5,492,269K and 4.96% in 2023[41] - Time deposits increased to$ 1,149,773K with a yield of 3.50%, up from $969,329K and 1.88% in 2023[41] Deposits and Accounts - Uninsured deposits remained stable at 15% of total deposits as of December 31, 2024[46] - Net growth in DDA accounts for 2024 was 4,497, representing a 1.8% increase[47] Branch and Operational Metrics - The company maintained 97 branches as of December 31, 2024, consistent with the previous year[29]