City Holding Co (CHCO)

City Holding Company operates as a financial holding company headquartered in Charleston, West Virginia, conducting its principal activities through its wholly-owned subsidiary, City National Bank of West Virginia. City National provides banking, wealth and investment management, and other financial solutions through a network of 96 bank branches and 934 full-time equivalent associates located in West Virginia, Kentucky, Virginia, and southeastern Ohio. The Company's business activities are currently limited to one reportable business segment, which is community banking. The Company's principal markets are located in West Virginia and contiguous markets in the surrounding states of Kentucky, Virginia, and southeastern Ohio, with the majority of its bank branches located in the areas of Charleston (WV), Huntington (WV), Beckley (WV), Lewisburg (WV), Martinsburg (WV), Lexington (KY), and along the I-81 corridor in Virginia. Within its markets, the Company competes with national, regional, and local community banks for deposits, credit, and wealth and investment management customers, as well as with credit unions, finance companies, financial technology 'fintech' companies, including decentralized finance and cryptocurrency companies, mutual funds, insurance companies, and other financial service providers.

City National has approximately 13% of the deposit market share in the counties of West Virginia where its bank branches are located. In eastern Kentucky, City National has approximately 24% of the deposit market share in the counties where its bank branches are located. In Virginia, City National has approximately 5% of the deposit market share in the counties along the I-81 corridor where its bank branches are located. In Lawrence County, Ohio, where City National has three bank branches, City National has approximately 19% of the deposit market share. The Company's competitive advantages include its 'Integrity in Action' program, its commitment to integrity and the highest ethical standards, and a work environment characterized as 'family' by its employees.

City Holding Company generates revenue through its wholly-owned subsidiary, City National Bank of West Virginia, which provides a range of financial products and services. The principal products and services include commercial banking, consumer banking, mortgage banking, and wealth and investment management services. Commercial banking services include loans for commercial and industrial projects, income producing commercial real estate, owner-occupied real estate, and construction and land development, as well as deposit services including treasury management, lockbox, and other cash management services, and merchant credit card services through a third-party vendor. Consumer banking services include checking, savings, and money market accounts, certificates of deposit, individual retirement accounts, installment and real estate loans and lines of credit, and credit cards through a third-party vendor. Mortgage banking services include fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government insured mortgages, secondary marketing, and mortgage servicing. Wealth and investment management services include administration of personal trusts and estates, management of investment accounts for individuals, employee benefit plans and charitable foundations, corporate trust and institutional custody, financial and estate planning, and retirement plan services. The Company's customer base is diverse, and no single depositor could have a material adverse effect on liquidity, capital, or other elements of financial performance.

City National's loan portfolio is comprised of commercial and industrial, commercial real estate, residential real estate, home equity, consumer loans, and demand deposit account overdrafts. As of December 31, 2025, City National reported $454.0 million ¹ of loans classified as 'Commercial and Industrial.' As of December 31, 2025, City National reported $1.87 billion ² of loans classified as 'Commercial Real Estate,' which is further segmented by product types: Commercial 1-4 Family loans totaled $210.2 million ³, the Hotel portfolio totaled $398.6 million ⁴, Multi-family totaled $237.4 million ⁵, Nonresidential non-owner occupied commercial real estate totaled $767.6 million ⁶, and nonresidential owner-occupied commercial real estate totaled $253.4 million ⁷ as of December 31, 2025. As of December 31, 2025, City National reported $1.91 billion ⁸ of loans classified as 'Residential Real Estate.' As of December 31, 2025, City National reported $224.7 million ⁹ of loans classified as 'Home Equity.' As of December 31, 2025, City National reported $47.4 million ¹⁰ of loans classified as 'Consumer.' As of December 31, 2025, City National reported $3.7 million ¹¹ of loans classified as 'DDA Overdrafts.' At December 31, 2025, approximately 47% ¹² of the Company's loan portfolio was categorized as residential mortgage and home equity loans, and approximately 52% ¹³ of the Company's loan portfolio was categorized as commercial and industrial and commercial real estate. Loans to 'Lessors of Nonresidential Buildings' and 'Lessors of Residential Buildings and Dwellings' were 14% ¹⁴ and 11% ¹⁵, respectively, of total loans at December 31, 2025. At December 31, 2025, the Company had $1.6 billion ¹⁶ of commercial loans classified as non-owner occupied, which was within its designated concentration threshold.

The Company's branch network includes 58 branches in West Virginia, 22 branches in Kentucky, 13 branches in Virginia, and 3 branches in southeastern Ohio. As of December 31, 2025, the outstanding balance of commercial loans to markets outside of the geographical footprint of the bank's branches was approximately $807 million ¹⁷, or 35% ¹⁸ of City National's outstanding commercial loan balances as compared to $420 million ¹⁹, or 19% ²⁰, as of December 31, 2024. The increase from the prior year is primarily due to branch closure in Columbus, Ohio during 2025. As of December 31, 2025, we employed 950 full and part-time employees (934 FTEs) across our 96 branches. Our average quarterly employee turnover rate in 2025 was under 6% ²¹. As of December 31, 2025, approximately 79% ²² of our current workforce is female, 21% ²³ is male, our average tenure is approximately 10 years ²⁴, and approximately 14% ²⁵ of our workforce has a college degree. At December 31, 2025, City National could pay dividends up to $43.7 million ²⁶ without prior regulatory permission. No dividends were paid in 2025 or 2024 that required regulatory approval.

The Company's total assets, net income, and earnings per share are detailed in the financial statements. The Company's capital ratios as of December 31, 2025 include a Common Equity Tier 1 capital ratio of 16.9% ²⁷ for City Holding Company and 13.4% ²⁸ for City National Bank, a Tier 1 capital ratio of 16.9% ²⁹ for City Holding Company and 13.4% ³⁰ for City National Bank, a Total Capital ratio of 17.4% ³¹ for City Holding Company and 13.9% ³² for City National Bank, and a Tier 1 Leverage Ratio of 11.0% ³³ for City Holding Company and 8.7% ³⁴ for City National Bank. As of December 31, 2024, the Company's capital ratios included a Common Equity Tier 1 capital ratio of 16.5% ³⁵ for City Holding Company and 13.6% ³⁶ for City National Bank, a Tier 1 capital ratio of 16.5% ³⁷ for City Holding Company and 13.6% ³⁸ for City National Bank, a Total Capital ratio of 17.0% ³⁹ for City Holding Company and 14.1% ⁴⁰ for City National Bank, and a Tier 1 Leverage Ratio of 10.6% ⁴¹ for City Holding Company and 8.7% ⁴² for City National Bank.

The Company's growth strategy includes expanding its commercial lending to markets outside of its branches' geographical footprint. At December 31, 2025, the outstanding balance of commercial loans to markets outside of the geographical footprint of the bank's branches was approximately $807 million , or 35% of City National's outstanding commercial loan balances as compared to $420 million , or 19% , as of December 31, 2024. The increase from the prior year is primarily due to branch closure in Columbus, Ohio during 2025. The Company also continues to invest in its delivery channels, including automated-teller-machines, interactive-teller machines, mobile banking, debit cards, interactive voice response systems, and Internet technology.

The Company's growth strategy also includes potential future acquisitions, as the filing notes that the Company's ability to effectively execute its business plan includes with respect to future acquisitions. The Company's market area includes the I-64 corridor from Lexington, Kentucky through Lexington, Virginia and along the I-81 corridor through the Shenandoah Valley from Lexington, Virginia to Martinsburg, West Virginia, and the Company may seek to expand within these regions.

The filing does not provide specific margin or cost outlook figures or efficiency targets.

The Company's operational outlook includes maintaining its network of 96 bank branches and 934 full-time equivalent associates. The Company invests in the growth and development of its employees through various on-site and off-site training opportunities. The Company evaluates its employees on at least an annual basis, focusing on job performance, achievement of goals, and employee development.

The Company's capital allocation strategy includes maintaining capital adequacy above regulatory guidelines. As of December 31, 2025, City Holding Company's Common Equity Tier 1 capital was $730,153 thousand ⁴³, Tier 1 capital was $730,453 thousand ⁴⁴, and Total Capital was $750,319 thousand ⁴⁵. The Company's dividend policy is subject to regulatory limitations, and at December 31, 2025, City National could pay dividends up to $43.7 million without prior regulatory permission. The filing does not specify R&D spending levels, capital expenditure plans, or share repurchase authorization amounts.

The Company faces headwinds from general economic conditions, especially in the communities and markets in which it conducts its business. The Company's primary markets are located in West Virginia and contiguous markets in Kentucky, Virginia, and southeastern Ohio, where population changes have been mixed. According to the most recently available U.S. Census Bureau estimates, from 2020 to 2024, the population in West Virginia counties where City National's branches are located decreased by 0.1% ⁴⁶, Kentucky counties increased by 1.4% ⁴⁷, Virginia counties increased by 4.4% ⁴⁸, and Lawrence County, Ohio decreased by 4.1% ⁴⁹, compared to the U.S. national average increase of 2.6% ⁵⁰.

The Company faces regulatory headwinds, including the requirement to maintain well-capitalized and well-managed status under the Bank Holding Company Act and the Dodd-Frank Act. The Company is subject to the Community Reinvestment Act, and City National received a 'Satisfactory' rating on its most recent CRA examination in 2025. The Company also faces risks from changes in regulations, laws, taxes, government policies, monetary policies, and accounting policies affecting bank holding companies and their subsidiaries.

Management's message emphasizes the Company's commitment to integrity and the highest ethical standards, as reflected in the 'Integrity in Action' program. The strategic priorities for the period ahead include maintaining a strong capital position, with City Holding Company's Common Equity Tier 1 capital ratio at 16.9% as of December 31, 2025, and continuing to serve the communities in which it operates. Management also focuses on employee development and retention, as evidenced by the average quarterly employee turnover rate in 2025 being under 6% and the average employee tenure of approximately 10 years .

The filing provides capital adequacy data rather than a full income statement. For the fiscal year ended December 31, 2025, the Company's actual capital amounts and ratios are presented. City Holding Company's Common Equity Tier 1 capital was $730,153 thousand with a ratio of 16.9% , Tier 1 capital was $730,453 thousand with a ratio of 16.9% , Total Capital was $750,319 thousand with a ratio of 17.4% , and the Tier 1 Leverage Ratio was 11.0% . For the fiscal year ended December 31, 2024, City Holding Company's Common Equity Tier 1 capital was $688,707 thousand ⁵¹ with a ratio of 16.5% , Tier 1 capital was $688,707 thousand ⁵² with a ratio of 16.5% , Total Capital was $709,820 thousand ⁵³ with a ratio of 17.0% , and the Tier 1 Leverage Ratio was 10.6% . City National Bank's capital ratios as of December 31, 2025 were Common Equity Tier 1 of 13.4% , Tier 1 of 13.4% , Total Capital of 13.9% , and Tier 1 Leverage of 8.7% . As of December 31, 2024, City National Bank's capital ratios were Common Equity Tier 1 of 13.6% , Tier 1 of 13.6% , Total Capital of 14.1% , and Tier 1 Leverage of 8.7% . The filing does not include total revenue, net income, EPS, operating income, free cash flow, or net debt figures in a current-year versus prior-year format.

The Company's loan portfolio is concentrated in residential mortgage and home equity loans, which comprised approximately 47% of the loan portfolio at December 31, 2025, and commercial and industrial and commercial real estate loans, which comprised approximately 52% . A deterioration in the real estate market or economic conditions in the Company's primary markets, where population changes have been mixed with West Virginia counties declining by 0.1% and Lawrence County, Ohio declining by 4.1% from 2020 to 2024, could lead to credit losses. The Company's allowance for credit losses may not be sufficient to absorb actual losses in its loan portfolio. The Company faces competition from national, regional, and local community banks, as well as credit unions, finance companies, fintech companies, and other financial service providers. Changes in the interest rate environment could significantly impact the Company's net interest margin and earnings. The Company is subject to extensive regulation, and failure to maintain well-capitalized status could result in constraints on dividends, equity repurchases, and compensation. The Company's commercial loan portfolio includes $1.6 billion in non-owner occupied commercial real estate, which is monitored against internally designated concentration thresholds.