City Holding Co 8-K, filed Oct 18, 2022

City Holding Co (CHCO)

8-K 2022-10-18 For: 2022-10-18

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Added on July 04, 2026

About this 8-K

City Holding Co filed this 8-K on October 18, 2022.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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West Virginia			55-0619957
(State or Other Jurisdiction of			(I.R.S. Employer
Incorporation or Organization)			Identification No.)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company			☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Dated: October 18, 2022			City Holding Company


By:			/s/ David L. Bumgarner
			David L. Bumgarner
			Executive Vice President & Chief Financial Officer


	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2022			2022			2021			2021			2021			2022			2021

Earnings
Net Interest Income (FTE)	$	49,108		$	41,611		$	38,239		$	40,956		$	39,822		$	128,961		$	115,950
Net Income available to common shareholders	27,374			22,683			21,342			23,386			22,732			71,408			64,694

Per Share Data
Earnings per share available to common shareholders:
Basic	$	1.84		$	1.51		$	1.41		$	1.54		$	1.47		$	4.75		$	4.13
Diluted	1.83			1.51			1.41			1.54			1.47			4.75			4.13
Weighted average number of shares (in thousands):
Basic	14,776			14,888			14,974			15,026			15,279			14,878			15,501
Diluted	14,800			14,909			15,002			15,056			15,302			14,901			15,526
Period-end number of shares (in thousands)	14,856			14,864			15,045			15,062			15,192			14,856			15,192
Cash dividends declared	$	0.65		$	0.60		$	0.6		$	0.6		$	0.58		$	1.85		$	1.74
Book value per share (period-end)	36.91			39.83			42.03			45.22			44.58			36.91			44.58
Tangible book value per share (period-end)	29.09			31.99			34.27			37.44			36.85			29.09			36.85
Market data:
High closing price	$	90.24		$	83.07		$	85.99		$	83.14		$	79.99		$	90.24		$	87.41
Low closing price	78.40			73.88			76.82			76.52			72.29			73.88			69.05
Period-end closing price	88.69			79.88			78.70			81.79			77.91			88.69			77.91
Average daily volume (in thousands)	58			87			59			52			53			68			59
Treasury share activity:
Treasury shares repurchased (in thousands)	9			208			38			131			337			255			629
Average treasury share repurchase price	$	80.24		$	78.33		$	78.09		$	78.93		$	75.65		$	78.36		$	76.85

Key Ratios (percent)
Return on average assets	1.83		%	1.51		%	1.42		%	1.56		%	1.53		%	1.59		%	1.47		%
Return on average tangible equity	21.8		%	18.1		%	15.3		%	16.7		%	15.7		%	18.3		%	14.8		%


Yield on interest earning assets	3.72		%	3.15		%	2.94		%	3.08		%	3.04		%	3.27	%	3.07	%
Cost of interest bearing liabilities	0.21		%	0.15		%	0.17		%	0.19		%	0.22		%	0.18	%	0.28	%
Net Interest Margin	3.57		%	3.04		%	2.82		%	2.94		%	2.89		%	3.14	%	2.87	%
Non-interest income as a percent of total revenue	27.2		%	30.9		%	32.4		%	30.2		%	31.1		%	29.5	%	31.0	%
Efficiency Ratio	46.3		%	50.5		%	51.7		%	48.3		%	50.0		%	49.3	%	52.3	%
Price/Earnings Ratio (a)	12.08			13.23			13.93			13.27			13.22			13.99		14.14

Capital (period-end)
Average Shareholders' Equity to Average Assets	10.32		%	10.26		%	11.25		%	11.25		%	11.69		%
Tangible equity to tangible assets	7.41		%	7.76		%	8.75		%	9.58		%	9.59		%
Consolidated City Holding Company risk based capital ratios (b):
CET I	15.82		%	15.85		%	16.18		%	16.08		%	16.11		%
Tier I	15.82		%	15.85		%	16.18		%	16.08		%	16.11		%
Total	16.22		%	16.26		%	16.60		%	16.51		%	16.56		%
Leverage	9.74		%	9.42		%	9.58		%	9.44		%	9.46		%
City National Bank risk based capital ratios (b):
CET I	14.68		%	14.80		%	14.82		%	14.35		%	14.76		%
Tier I	14.68		%	14.80		%	14.82		%	14.35		%	14.76		%
Total	15.07		%	15.21		%	15.24		%	14.78		%	15.21		%
Leverage	9.05		%	8.81		%	8.80		%	8.45		%	8.73		%

Other (period-end)
Branches	94			94			94			94			94
FTE	903			915			897			905			921

Assets per FTE (in thousands)	$	6,588		$	6,825		$	6,703		$	6,637		$	6,463
Deposits per FTE (in thousands)	5,492			5,621			5,574			5,445			5,308

(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) September 30, 2022 risk-based capital ratios are estimated.


Office supplies	466		427		410		378		406		1,303		1,169
Legal and professional fees	532		525		527		405		610		1,584		1,874
Telecommunications	651		754		584		702		790		1,988		2,156
Repossessed asset (gains) losses, net of expenses	(3)		(32)		40		(29)		(108)		4		(28)
Other expenses	3,591		3,674		3,436		3,559		3,776		10,701		11,128
Total Non-Interest Expense	31,501		30,689		29,527		28,624		29,178		91,714		88,561
Income Before Income Taxes	34,795		28,450		26,593		29,623		28,982		89,846		81,571
Income tax expense	7,421		5,767		5,251		6,237		6,250		18,438		16,877
Net Income Available to Common Shareholders	$	27,374	$	22,683	$	21,342	$	23,386	$	22,732	$	71,408	$	64,694

Distributed earnings allocated to common shareholders	$	9,564	$	8,837	$	8,943	$	8,949	$	8,726	$	27,220	$	26,177
Undistributed earnings allocated to common shareholders	17,555		13,643		12,199		14,211		13,786		43,509		37,899
Net earnings allocated to common shareholders	$	27,119	$	22,480	$	21,142	$	23,160	$	22,512	$	70,729	$	64,076


Average common shares outstanding	14,776		14,888		14,974		15,026		15,279		14,878		15,501
Shares for diluted earnings per share	14,800		14,909		15,002		15,056		15,302		14,901		15,526

Basic earnings per common share	1.84		1.51		1.41		1.54		1.47		4.75		4.13
Diluted earnings per common share	1.83		1.51		1.41		1.54		1.47		4.75		4.13


	(Unaudited)		(Unaudited)		(Unaudited)				(Unaudited)
	September 30,		June 30,		March 31,		December 31,		September 30,
	2022		2022		2022		2021		2021
Assets
Cash and due from banks	$	65,051	$	90,449	$	100,877	$	101,804	$	103,841
Interest-bearing deposits in depository institutions	233,302		606,530		497,171		532,827		535,708
Cash and cash equivalents	298,353		696,979		598,048		634,631		639,549

Investment securities available-for-sale, at fair value	1,489,392		1,497,227		1,409,513		1,408,165		1,372,077
Other securities	24,372		24,383		24,785		25,531		25,497
Total investment securities	1,513,764		1,521,610		1,434,298		1,433,696		1,397,574

Gross loans	3,628,752		3,566,758		3,559,905		3,543,814		3,521,925
Allowance for credit losses	(17,011)		(17,015)		(17,280)		(18,166)		(18,751)
Net loans	3,611,741		3,549,743		3,542,625		3,525,648		3,503,174

Bank owned life insurance	121,283		120,528		120,522		120,978		120,238
Premises and equipment, net	71,686		72,388		73,067		74,071		75,156
Accrued interest receivable	17,256		16,342		16,101		15,627		16,224
Net deferred tax assets	49,888		30,802		18,001		63		90
Intangible assets	116,081		116,428		116,774		117,121		117,489
Other assets	147,716		118,375		92,331		81,860		82,419
Total Assets	$	5,947,768	$	6,243,195	$	6,011,767	$	6,003,695	$	5,951,913

Liabilities
Deposits:
Noninterest-bearing	$	1,429,281	$	1,531,660	$	1,357,266	$	1,373,125	$	1,311,464
Interest-bearing:
Demand deposits	1,160,970		1,189,056		1,191,492		1,135,848		1,139,033
Savings deposits	1,427,785		1,435,645		1,425,528		1,347,448		1,332,910
Time deposits	939,769		985,567		1,024,559		1,068,915		1,104,069
Total deposits	4,957,805		5,141,928		4,998,845		4,925,336		4,887,476
Short-term borrowings
Customer repurchase agreements	304,807		402,368		288,483		312,458		296,642
Net deferred tax liabilities	—		—		—		—		—
Other liabilities	136,868		106,906		92,009		84,796		90,499
Total Liabilities	5,399,480		5,651,202		5,379,337		5,322,590		5,274,617

Stockholders' Equity
Preferred stock	—		—		—		—		—
Common stock	47,619		47,619		47,619		47,619		47,619
Capital surplus	170,138		169,557		170,206		170,942		170,300
Retained earnings	685,657		667,933		654,138		641,826		627,463


Cost of common stock in treasury	(209,644)		(209,133)		(194,819)		(193,542)		(183,303)
Accumulated other comprehensive (loss) income:
Unrealized (loss) gain on securities available-for-sale	(141,997)		(80,498)		(41,229)		17,745		20,878
Underfunded pension liability	(3,485)		(3,485)		(3,485)		(3,485)		(5,661)
Total Accumulated Other Comprehensive (Loss) Income	(145,482)		(83,983)		(44,714)		14,260		15,217
Total Stockholders' Equity	548,288		591,993		632,430		681,105		677,296
Total Liabilities and Stockholders' Equity	$	5,947,768	$	6,243,195	$	6,011,767	$	6,003,695	$	5,951,913

Regulatory Capital
Total CET 1 capital	$	582,213	$	564,158	$	565,048	$	555,532	$	550,426
Total tier 1 capital	582,213		564,158		565,048		555,532		550,426
Total risk-based capital	596,708		578,657		579,807		570,336		565,712
Total risk-weighted assets	3,679,511		3,558,249		3,492,920		3,453,893		3,417,020


	Three Months Ended
	September 30, 2022						June 30, 2022						September 30, 2021
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets:
Loan portfolio (1):
Residential real estate (2)	$	1,792,365	$	17,640	3.90	%	$	1,730,617	$	16,063	3.72	%	$	1,648,921	$	15,813	3.80	%
Commercial, financial, and agriculture (2)	1,759,567		20,092		4.53	%	1,785,511		16,421		3.69	%	1,836,604		17,344		3.75	%
Installment loans to individuals (2), (3)	44,591		683		6.08	%	43,585		631		5.81	%	49,972		714		5.67	%
Previously securitized loans (4)	***		78		***		***		93		***		***		91		***
Total loans	3,596,523		38,493		4.25	%	3,559,713		33,208		3.74	%	3,535,497		33,962		3.81	%
Securities:
Taxable	1,359,207		9,557		2.79	%	1,269,049		7,548		2.39	%	1,136,519		6,144		2.14	%
Tax-exempt (5)	215,219		1,555		2.87	%	215,603		1,526		2.84	%	245,551		1,590		2.57	%
Total securities	1,574,426		11,112		2.80	%	1,484,652		9,074		2.45	%	1,382,070		7,734		2.22	%
Deposits in depository institutions	289,460		1,529		2.10	%	441,239		781		0.71	%	544,843		196		0.14	%
Total interest-earning assets	5,460,409		51,134		3.72	%	5,485,604		43,063		3.15	%	5,462,410		41,892		3.04	%
Cash and due from banks	81,202						102,532						101,058
Premises and equipment, net	72,196						72,887						75,956
Goodwill and intangible assets	116,297						116,645						117,719
Other assets	278,527						256,354						220,420
Less: Allowance for credit losses	(17,224)						(17,755)						(20,407)
Total assets	$	5,991,407					$	6,016,267					$	5,957,156

Liabilities:
Interest-bearing demand deposits	$	1,151,122	$	272	0.09	%	$	1,156,200	$	148	0.05	%	$	1,093,243	$	127	0.05	%
Savings deposits	1,431,591		358		0.10	%	1,430,121		182		0.05	%	1,315,462		169		0.05	%
Time deposits (2)	964,447		956		0.39	%	1,004,356		999		0.40	%	1,126,553		1,659		0.58	%
Short-term borrowings	270,310		440		0.65	%	288,031		123		0.17	%	282,722		115		0.16	%
Total interest-bearing liabilities	3,817,470		2,026		0.21	%	3,878,708		1,452		0.15	%	3,817,980		2,070		0.22	%
Noninterest-bearing demand deposits	1,455,123						1,435,256						1,356,745
Other liabilities	100,303						85,075						86,263
Stockholders' equity	618,511						617,228						696,168
Total liabilities and
stockholders' equity	$	5,991,407					$	6,016,267					$	5,957,156
Net interest income			$	49,108					$	41,611					$	39,822
Net yield on earning assets					3.57	%					3.04	%					2.89	%

(1) For purposes of this table, non-accruing loans have been included in average balances and the following amounts (in thousands) of net loan fees have been included in interest income:

Loan fees, net (includes PPP fees)			$	308					$	3					$	1,120


(2) Included in the above table are the following amounts (in thousands) for the accretion of the fair value adjustments related to the Company's acquisitions:
Residential real estate	$	64	$	77	$	154
Commercial, financial, and agriculture	103		118		265
Installment loans to individuals	7		15		21
Time deposits	21		21		48
	$	195	$	231	$	488

(3) Includes the Company’s consumer and DDA overdrafts loan categories.
(4) Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0.
(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.


99.1			News Release issued October 18, 2022


	Three Months Ended										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
	2022		2022		2022		2021		2021		2022		2021
Interest Income
Interest and fees on loans	$	38,493	$	33,208	$	31,874	$	35,277	$	33,961	$	103,575	$	101,399
Interest on investment securities:
Taxable	9,556		7,547		6,223		5,753		6,144		23,327		17,318
Tax-exempt	1,228		1,205		1,216		1,226		1,257		3,650		3,801
Interest on deposits in depository institutions	1,530		782		238		217		196		2,549		476
Total Interest Income	50,807		42,742		39,551		42,473		41,558		133,101		122,994

Interest Expense
Interest on deposits	1,585		1,328		1,521		1,710		1,955		4,433		7,695
Interest on short-term borrowings	440		124		114		132		115		677		357
Total Interest Expense	2,025		1,452		1,635		1,842		2,070		5,110		8,052
Net Interest Income	48,782		41,290		37,916		40,631		39,488		127,991		114,942
Provision for (Recovery of) credit losses	730		—		(756)		—		(725)		(26)		(3,165)
Net Interest Income After Provision for (Recovery of) Credit Losses	48,052		41,290		38,672		40,631		40,213		128,017		118,107

Non-Interest Income
Net gains on sale of investment securities	—		—		—		—		—		—		312
Unrealized gains (losses) recognized on equity securities still held	1		(601)		(723)		52		93		(1,322)		452
Service charges	7,487		7,067		6,725		7,057		6,706		21,281		18,482
Bankcard revenue	7,052		7,062		6,444		6,762		6,791		20,558		20,225
Trust and investment management fee income	2,158		2,100		2,197		2,198		2,172		6,455		6,217
Bank owned life insurance	754		978		2,014		748		747		3,746		3,147
Other income	792		1,243		791		799		1,438		2,825		3,190
Total Non-Interest Income	18,244		17,849		17,448		17,616		17,947		53,543		52,025

Non-Interest Expense
Salaries and employee benefits	17,398		16,413		15,577		15,299		15,321		49,386		46,551
Occupancy related expense	2,664		2,620		2,709		2,429		2,507		7,993		7,654
Equipment and software related expense	2,949		2,732		2,769		2,733		2,554		8,452		7,753
FDIC insurance expense	416		409		435		400		396		1,259		1,183
Advertising	854		951		798		582		804		2,603		2,509
Bankcard expenses	1,405		1,665		1,606		1,576		1,549		4,676		4,879
Postage, delivery, and statement mailings	578		551		636		590		573		1,765		1,733


	September 30,		June 30,		March 31,		December 31,		September 30,
	2022		2022		2022		2021		2021

Commercial and industrial	$	375,735	$	360,481	$	337,384	$	346,184	$	353,046

1-4 Family	109,710		108,765		108,424		107,873		108,913
Hotels	355,001		337,910		314,902		311,315		297,341
Multi-family	186,440		203,856		209,359		215,677		215,307
Non Residential Non-Owner Occupied	569,369		551,240		637,092		639,818		664,365
Non Residential Owner Occupied	177,673		180,188		200,180		204,233		205,579
Commercial real estate (1)	1,398,193		1,381,959		1,469,957		1,478,916		1,491,505

Residential real estate (2)	1,678,770		1,651,005		1,588,860		1,548,965		1,506,572
Home equity	130,837		125,742		121,460		122,345		124,806
Consumer	41,902		44,580		39,778		40,901		43,296
DDA Overdrafts	3,315		2,991		2,466		6,503		2,700
Gross Loans	$	3,628,752	$	3,566,758	$	3,559,905	$	3,543,814	$	3,521,925

Construction loans included in:
(1) - Commercial real estate loans	$	4,125	$	6,767	$	14,877	$	11,783	$	19,360
(2) - Residential real estate loans	19,333		18,751		16,253		17,252		19,059


	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2022			2022			2022			2021			2021			2022			2021
Allowance for Credit Losses
Balance at beginning of period	$	17,015		$	17,280		$	18,166		$	18,751		$	20,016		$	18,166		$	24,549

Charge-offs:
Commercial and industrial	(411)			—			(34)			—			—			(445)			(245)
Commercial real estate	—			(24)			—			(276)			(392)			(24)			(2,111)
Residential real estate	(93)			(56)			(50)			(68)			(18)			(199)			(197)
Home equity	(71)			(19)			—			(58)			(47)			(90)			(119)
Consumer	(16)			(9)			(23)			(13)			(3)			(48)			(229)
DDA overdrafts	(719)			(604)			(631)			(635)			(633)			(1,954)			(1,516)
Total charge-offs	(1,310)			(712)			(738)			(1,050)			(1,093)			(2,760)			(4,417)

Recoveries:
Commercial and industrial	149			32			59			31			69			240			140
Commercial real estate	9			25			53			27			18			87			197
Residential real estate	1			4			45			7			29			50			120
Home equity	2			3			17			6			58			22			84
Consumer	29			19			28			40			72			76			215
DDA overdrafts	383			364			406			354			307			1,153			1,028
Total recoveries	573			447			608			465			553			1,628			1,784

Net charge-offs	(737)			(265)			(130)			(585)			(540)			(1,132)			(2,633)
Provision for (recovery of) credit losses	730			—			(756)			—			(725)			(26)			(3,165)
Balance at end of period	$	17,008		$	17,015		$	17,280		$	18,166		$	18,751		$	17,008		$	18,751

Loans outstanding	$	3,628,752		$	3,566,758		$	3,559,905		$	3,543,814		$	3,521,925
Allowance as a percent of loans outstanding	0.47		%	0.48		%	0.49		%	0.51		%	0.53		%
Allowance as a percent of non-performing loans	320.5		%	292.6		%	331.3		%	290.1		%	243.1		%

Average loans outstanding	$	3,596,523		$	3,559,713		$	3,527,393		$	3,522,272		$	3,535,497		$	3,561,463		$	3,553,966
Net charge-offs (annualized) as a percent of average loans outstanding	0.08		%	0.03		%	0.01		%	0.07		%	0.06		%	0.04		%	0.10		%