City Holding(US:CHCO)2025-04-23 13:48Financial Performance - City Holding Company reported net income of $30.3 million and diluted earnings of $2.06 per share for Q1 2025, achieving a return on assets of 1.89% and a return on tangible equity of 20.7%[2]. - Net income available to common shareholders reached $30,342,000 in Q1 2025, up from $29,523,000 in Q1 2024, reflecting a year-over-year increase of 2.8%[24]. - Basic earnings per share for Q1 2025 was $2.06, compared to $1.98 in Q1 2024, indicating a growth of 4.0%[24]. - The efficiency ratio improved to 49.6% in Q1 2025 from 48.5% in Q1 2024, indicating better cost management[21]. - Return on average assets increased to 1.89% in Q1 2025, compared to 1.92% in Q1 2024, showing a slight decline[21]. Income and Expenses - Net interest income increased by approximately $0.2 million, or 0.4%, to $55.8 million in Q1 2025, with a net interest margin improvement from 3.75% to 3.84%[3]. - Non-interest income rose to $18.7 million in Q1 2025, a 4.5% increase from $17.9 million in Q1 2024, driven by a 10.6% increase in wealth and investment management fee income[6][7]. - Non-interest expenses increased by $1.7 million, or 4.8%, to $37.6 million in Q1 2025, primarily due to higher equipment and software expenses[8]. - Total interest income for Q1 2025 was $77,388,000, compared to $73,568,000 in Q1 2024, marking an increase of 5.1%[23]. - Non-interest income totaled $18,737,000 in Q1 2025, up from $17,948,000 in Q1 2024, which is an increase of 4.4%[23]. Asset Quality - The ratio of nonperforming assets to total loans increased from 0.35% to 0.38%, while total past due loans decreased from $8.8 million to $7.5 million[4]. - The allowance for loan losses decreased to $21,669,000, down from $21,922,000 in the previous quarter, indicating improved asset quality[28]. - Total nonaccrual loans increased to $15,968,000 as of March 31, 2025, up from $14,029,000 on December 31, 2024, representing a 13.8% increase[29]. - Total past due loans decreased to $7,531,000 as of March 31, 2025, down from $8,818,000 on December 31, 2024, a decline of 14.6%[29]. - The allowance for loan losses as a percentage of loans outstanding remained stable at 0.51%[28]. Loans and Deposits - Total loans increased by $11.0 million, or 0.3%, to $4.29 billion, with residential real estate loans rising by $18.2 million, or 1.0%[9]. - Period-end deposit balances increased by $114.3 million, with total average depository balances rising by $29.2 million, or 0.6%[10]. - Total deposits rose to $5,261,189,000, up 2.28% from $5,144,150,000 at the end of December 2024[25]. - The average balance of the loan portfolio was $4,292,794,000 for the three months ended March 31, 2025, compared to $4,215,962,000 for the previous quarter, a growth of 1.8%[30]. - The net charge-offs for the quarter were $253,000, with an annualized net charge-off rate of 0.02% of average loans outstanding[28]. Capital and Equity - The Company maintained a tangible equity of $597 million, with a tangible equity ratio increasing from 9.1% to 9.2%[15]. - Total stockholders' equity increased to $756,336,000, up from $730,664,000 at the end of December 2024, marking a growth of 3.59%[26]. - The total risk-based capital was reported at $720,400,000, an increase from $709,820,000 in the previous quarter[26]. - The tangible common equity to tangible assets ratio was 9.23% as of March 31, 2025, up from 9.06% on December 31, 2024[33]. Stock Performance and Dividends - The period-end closing price of the stock was $117.47, down from $104.22 in Q1 2024, reflecting a year-over-year increase of 12.7%[20]. - The Board of Directors approved a quarterly cash dividend of $0.79 per share, with 80,600 shares repurchased at an average price of $117.42 per share during the quarter[16]. - Cash dividends declared remained stable at $0.79 per share for both Q1 2025 and Q1 2024[20]. - The company repurchased 81 thousand treasury shares at an average price of $117.42 in Q1 2025[20]. Depository Trends - Estimated uninsured deposits as of March 31, 2025, are 15% for noninterest-bearing demand deposits, down from 17% as of December 31, 2024[35]. - The total deposits remained stable at 15% for both March 31, 2025, and December 31, 2024[35]. - In 2025, the net growth in demand deposit accounts (DDA) was 0.3%, with 6,818 new DDA accounts and a net increase of 837 accounts[36]. - The net number of new DDA accounts in 2024 was 4,497, reflecting a growth rate of 1.8%[36]. - The company experienced a significant drop in net new accounts from 8,860 in 2021 to 837 in 2025[36].