City Holding Company Announces Record Annual Earnings for Fiscal Year 2025

CHARLESTON, West Virginia — City Holding Company (NASDAQ: CHCO), a bank holding company with approximately $6.7 billion in assets, announced its financial results for the year ended December 31, 2025, reporting record net income and earnings per share, marking a milestone year in the company’s history.

Key Financial Highlights of 2025

City Holding Company achieved record annual results driven by strong performance across net interest income, non-interest income, and continued operational discipline. The company’s financial performance for the full year included:

• Net income of $130.5 million, a significant increase compared to previous years.
• Diluted earnings per share of $8.93, the highest on record for the company.
• A return on assets (ROA) of 1.97 %, reflecting efficient use of company resources.
• Return on tangible equity of 21.2 %, a strong indicator of profitability relative to shareholder equity.

CEO’s Perspective on Performance

Charles Hageboeck, President and CEO of City Holding Company, highlighted that the company’s financial success was rooted not only in numbers, but also in the organization’s commitment to customer service, community engagement, and employee satisfaction. According to Hageboeck, while the banking industry has seen consolidation and growth focused on size, City Holding Company remains committed to building long-term relationships and delivering high-quality service within the communities it serves.

Net Interest Income Growth

Net interest income is a key revenue source for banks and reflects the difference between interest earned on loans and interest paid on deposits and other liabilities. For 2025:

• Net interest income increased from $220.2 million in 2024 to $236.4 million in 2025.
• Tax-equivalent net interest income rose 7.3 % compared to the prior year.

This growth was supported by higher average loan balances and favorable changes in interest rates, although some offset occurred due to increases in interest-bearing liability costs.

Credit Quality and Asset Management

City Holding Company continued to maintain strong credit quality throughout 2025. The company’s ratio of nonperforming assets to total loans improved slightly, indicating stable credit performance. Total past-due loans also saw a reduction, demonstrating effective risk management practices.

Non-Interest Income and Expenses

Non-interest income, which includes revenue from service charges, investment management fees, and other banking services, increased modestly year-over-year. For the full year, non-interest income reached $77.8 million, compared to $73.3 million in 2024.

Non-interest expenses rose to $154.1 million, primarily due to higher employee compensation and benefits, tax-related costs, and investments in technology and equipment. However, these increases were partially offset by reduced advertising costs.

Balance Sheet Trends

City Holding Company strengthened its balance sheet during 2025 with steady growth in loans and deposits:

• Total loans increased by approximately $232.2 million, a 5.4 % rise from the previous year.
• Deposits grew by $156.8 million, showing continued customer trust in the bank’s offerings.

The company also reported favorable liquidity metrics and capital ratios that remained well above regulatory “well-capitalized” thresholds as of December 31, 2025.

Dividends and Share Repurchase Activity

During 2025, the Board of Directors approved a quarterly cash dividend of $0.87 per share, reflecting confidence in the company’s cash flow and financial position. In addition, the company repurchased shares under its authorized repurchase plan, further demonstrating its commitment to returning value to shareholders.

Outlook and Forward-Looking Information

City Holding Company provided forward-looking statements, as required by securities regulations, noting that actual future results may differ due to economic conditions, regulatory changes, competition, credit risk, and other factors. These statements are meant to inform investors of potential risks while outlining management’s expectations for continued performance in line with strategic priorities.

About City Holding Company

City Holding Company is a bank holding company whose principal subsidiary, City National Bank of West Virginia, serves customers across multiple states with a focus on community banking, financial solutions, and local engagement. The company emphasizes personal service and sustainable growth as core elements of its strategy.

Conclusion

City Holding Company closed 2025 with record earnings, strong financial metrics, and a reinforced commitment to its community banking roots. The company’s performance highlights its ability to balance growth with profitability while managing credit quality and operational efficiency. Shareholders and stakeholders alike will be watching how City builds on this momentum in 2026 and beyond.

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