City Holding(US:CHCO)2026-01-21 15:29Financial Performance - City Holding Company reported record net income of $130.5 million and diluted earnings of $8.93 per share for the year ended December 31, 2025, achieving a return on assets of 1.97% and a return on tangible equity of 21.2%[2] - Net Income available to common shareholders for the twelve months ended December 31, 2025, was $130,485,000, up from $117,101,000 in 2024, representing a growth of 11.5%[29] - Earnings per share (EPS) for the year ended December 31, 2025, was $8.94, compared to $7.91 in 2024, indicating a year-over-year increase of 13.0%[29] - Net Income Available to Common Shareholders for the three months ended December 31, 2025, was $31,568,000, compared to $28,654,000 for the same period in 2024, representing an increase of 10.3%[33] Income and Revenue - Net interest income increased by $16.1 million, or 7.3%, from $221.1 million in 2024 to $237.2 million in 2025, driven by an increase in average loan balances and a decrease in the cost of interest-bearing liabilities[4] - Non-interest income rose to $77.8 million for the year ended December 31, 2025, compared to $73.3 million in 2024, with a 2.9% increase in core non-interest income[11] - Total Interest Income for the three months ended December 31, 2025, was $81,447,000, an increase from $78,820,000 for the same period in 2024, representing a growth of 2.4%[32] - Net Interest Income for the three months ended December 31, 2025, was $60,825,000, compared to $55,790,000 for the same period in 2024, reflecting an increase of 9.1%[29] Asset and Loan Growth - Total loans increased by $232.2 million, or 5.4%, to $4.51 billion at December 31, 2025, with significant growth in commercial and industrial loans by 8.1%[17] - Total Assets as of December 31, 2025, were $6,722,018,000, an increase from $6,459,459,000 as of December 31, 2024, reflecting a growth of 4.1%[34] - The total gross loans increased to $4,507,005, up from $4,412,775 in the previous quarter, representing a growth of 2.0%[36] - The commercial and industrial loan portfolio grew to $453,975, up from $426,654 in the previous quarter, reflecting a growth of 6.0%[36] Deposits and Liquidity - Period-end deposit balances increased by $156.8 million, or 3.0%, from December 31, 2024, to December 31, 2025, with average depository balances rising by $192.8 million[18] - The Company maintained a gross loan to deposit ratio of 85.0% and a gross loan to asset ratio of 67.0% at December 31, 2025, indicating solid liquidity management[20] - Total Deposits as of December 31, 2025, were $5,300,988,000, compared to $5,144,150,000 as of December 31, 2024, indicating an increase of 3.1%[34] Expenses and Efficiency - Non-interest expenses increased by $6.9 million, or 4.7%, from $147.2 million in 2024 to $154.1 million in 2025, primarily due to salary adjustments and increased health insurance costs[15] - The efficiency ratio for the twelve months ended December 31, 2025, was 48.2%, compared to 48.8% in 2024, indicating improved operational efficiency[30] Capital and Equity - The tangible equity ratio improved from 9.1% at December 31, 2024, to 9.9% at December 31, 2025, reflecting strong capitalization[23] - Stockholders' equity increased to $808,947, compared to $747,143 a year earlier, indicating a strong capital position[39] - The CET I capital ratio at period-end was 16.94%, slightly down from 17.19% in the previous quarter[30] Dividends and Share Repurchase - The Board of Directors approved a quarterly cash dividend of $0.87 per share, payable on January 30, 2026, as part of a share repurchase plan[25] - The company repurchased 141,000 treasury shares at an average price of $119.12 during the three months ended December 31, 2025[30] Credit Quality - The ratio of nonperforming assets to total loans decreased from 0.35% at December 31, 2024, to 0.32% at December 31, 2025, indicating improved credit quality[9] - The allowance for loan losses at the end of the period was $19,862, which is 0.44% of loans outstanding, slightly down from 0.45% in the previous quarter[37] - Total non-performing loans amounted to $13,919, with non-performing assets as a percentage of loans and other real estate owned at 0.32%[38] Market Activity - The average daily trading volume for the three months ended December 31, 2025, was 90,000 shares, compared to 76,000 shares in the previous quarter[30] - New DDA accounts for 2025 totaled 31,427, with a net increase of 3,548 accounts, reflecting a growth rate of 1.4%[48]