City Holding(CHCO) - 2024 Q4 - Annual Report

Financial Performance and Risks - The company's goodwill and other identifiable intangible assets were approximately $160 million as of December 31, 2024, with no impairment charge necessary for that year[107]. - The company may require additional capital in the future, but raising such capital may be challenging or dilutive to existing shareholders[110]. - The company holds available-for-sale investment securities, which are subject to market fluctuations that could lead to declines in value[106]. - The company's ability to raise additional capital is dependent on market conditions and its financial performance[110]. - Changes in tax laws and accounting standards could materially affect the Company's operations and financial reporting[133]. - The Company maintains an allowance for credit losses, which may not be sufficient due to changes in economic conditions and borrower risks[91]. - The determination of the allowance for credit losses involves significant estimates and subjectivity, which may lead to material changes[92]. - The Company operates in a highly regulated environment, impacting its ability to pay dividends, conduct mergers, and manage capital levels[125]. - Changes in laws and regulations governing financial institutions could materially affect the Company's business operations[127]. Competition and Market Position - The company faces intense competition from larger banks and financial institutions, which may impact its ability to attract and retain customers[100]. - The company’s common stock trading volume is lower than that of larger financial services companies, which could lead to price volatility[96]. - Future sales of substantial amounts of the company's common stock could negatively affect its market price[97]. - The emergence of fintech companies and alternative financial services may reduce the company's customer base and revenue streams[104]. Operational and Management Risks - The company relies heavily on third-party vendors for critical operations, and any failure in these services could adversely affect its business[115]. - The company may face challenges in integrating future acquisitions, which could impact expected benefits and shareholder value[112]. - The company’s risk management practices may not be fully effective, potentially leading to unexpected losses[119]. - The company may face operational risks due to reliance on the accuracy of information provided by customers and third parties[118]. - The Company relies heavily on its management team, and the unexpected loss of key personnel could adversely affect its operations[139]. Legal and Reputational Risks - The Company faces reputational risks from various sources, including employee misconduct and regulatory compliance deficiencies[130]. - The Company may face significant liabilities from legal actions related to its operations, impacting shareholders' equity[129]. - Cybersecurity breaches and fraud could lead to increased operating costs and significant reputational damage for the Company[134]. Environmental and Compliance Risks - Climate change poses risks to the Company's customers and could negatively impact financial outcomes due to geographic concentration[141]. - The Company is subject to risks from climate change, which could impact its customers and overall economic conditions[141]. - Regulatory compliance costs are increasing, which may affect the Company's financial condition and operational capabilities[126].