City Holding(CHCO) - 2025 Q3 - Quarterly Report

Financial Performance - Net income available to common shareholders increased to $98.9 million for the nine months ended September 30, 2025, compared to $88.4 million for the same period in 2024, representing a growth of 11.0%[118] - Earnings per common share (basic) rose to $6.76 for the nine months ended September 30, 2025, up from $5.96 in 2024, reflecting a 13.4% increase[118] - Non-interest income for the nine months ended September 30, 2025, was $58.1 million, a 2.5% increase from $56.7 million in 2024[156] - Non-interest income increased from $56.7 million for the nine months ended September 30, 2024, to $58.1 million for the nine months ended September 30, 2025, representing a growth of 2.5%[157] - Non-interest income for the quarter ended September 30, 2025, was $20.2 million, slightly down from $20.3 million in the same quarter of 2024[161] Interest Income and Margin - The Company's net interest income increased to $175.8 million for the nine months ended September 30, 2025, compared to $164.7 million in 2024, marking a growth of 6.7%[119] - Net interest income for the nine months ended September 30, 2025, was $176,416,000, an increase from $165,318,000 in 2024, representing a growth of approximately 6.7%[129] - The reported net interest margin increased slightly from 3.90% for the nine months ended September 30, 2024, to 3.95% for the same period in 2025[128] - For the third quarter of 2025, net interest income increased by $5.5 million, or 9.9%, from $55.6 million in Q3 2024 to $61.1 million in Q3 2025[133] - The reported net interest margin improved from 3.87% in Q3 2024 to 4.04% in Q3 2025, indicating enhanced profitability[134] Loans and Deposits - Gross loans increased by $138.0 million (3.2%) to $4.41 billion at September 30, 2025, with residential real estate loans rising by $86.2 million (4.7%) during the same period[125] - Total loans increased by $138.0 million from December 31, 2024, to September 30, 2025, reaching $4.41 billion[143] - Residential real estate loans increased by $86.2 million from December 31, 2024, to September 30, 2025, totaling $1.91 billion[147] - Total deposits rose by $113.4 million (2.2%) to $5.26 billion at September 30, 2025, with time deposits increasing by $53.5 million[126] Expenses and Allowance for Credit Losses - Non-interest expense for the nine months ended September 30, 2025, was $114.5 million, a 3.8% increase from $110.3 million in 2024[156] - Non-interest expenses increased by $4.2 million (3.8%), from $110.3 million in the first nine months of 2024 to $114.5 million in the first nine months of 2025, primarily due to higher salaries and employee benefits[159] - The allowance for credit losses was estimated using a 2-year unemployment forecast range of 4.3% to 4.7% for the September 30, 2025 estimate, reflecting a slight adjustment from the previous quarter[112] - The allowance for credit losses decreased from $21.9 million at December 31, 2024, to $19.7 million at September 30, 2025[155] - The company recorded a recovery of credit losses of $0.5 million in Q3 2025, compared to a provision for credit losses of $1.2 million in Q3 2024[150] Capital Adequacy - As of September 30, 2025, City Holding Company reported a Common Equity Tier I (CET I) Capital of $726,739, representing a ratio of 17.2%, exceeding the minimum required ratio of 7.0% under Basel III[181] - City National Bank's CET I Capital was $667,193, with a ratio of 15.8%, also above the minimum required ratio of 7.0%[181] - Total Capital for City Holding Company stood at $746,422, reflecting a ratio of 17.7%, surpassing the minimum required ratio of 10.5%[181] - City National Bank's Total Capital was $686,876, with a ratio of 16.3%, exceeding the minimum required ratio of 10.5%[181] - City Holding Company and City National Bank are considered "well capitalized" as of September 30, 2025, meeting all capital adequacy requirements[181] Shareholder Equity and Dividends - Shareholders' equity increased by $68.3 million for the nine months ended September 30, 2025, primarily due to net income of $98.9 million[178] - The dividend payout ratio decreased to 36.3% for the nine months ended September 30, 2025, down from 37.3% in 2024[118] Regulatory Compliance - The Company and its subsidiary bank do not currently plan to elect the community bank leverage ratio framework but may consider it in the future[183] - City Holding Company and City National Bank are subject to regulatory capital requirements from the Federal Reserve and the OCC/FDIC, respectively[181] - The management believes that both entities have met all capital adequacy requirements as of the reporting date[181] - The Company has a Tier I Leverage Ratio of 11.1% for City Holding Company and 10.2% for City National Bank, both exceeding the minimum required ratio of 4.0%[181] - The Company is classified as a qualifying community banking organization, eligible for the community bank leverage ratio framework if certain criteria are met[182]