City Holding Company (CHCO) Q2 2025 earnings summary

Executive summary

• Net income for the six months ended June 30, 2025 was $63.7 million, with record Q2 net income of $33.4 million and diluted EPS of $2.29; ROA for Q2 was 2.03% and return on tangible equity was 22.7%.

• Net interest income rose to $114.7 million for the six months and $58.9 million for the quarter, driven by higher loan yields and investment balances.

• Non-interest income increased to $19.2 million, with growth in service fees and wealth management.

• Non-interest expenses rose 6.1% year-over-year to $39.0 million, mainly due to higher salaries, benefits, and technology costs.

• Dividend payout ratio remained stable at 36.3% for the six months.

Financial highlights

• Total assets at June 30, 2025 were $6.60 billion, up from $6.46 billion at December 31, 2024.

• Gross loans increased to $4.34 billion, with residential real estate loans up $60.8 million (3.3%) and commercial real estate loans up $19.9 million (1.1%).

• Total deposits grew to $5.25 billion, with noninterest-bearing deposits and time deposits both increasing.

• Allowance for credit losses decreased to $19.7 million, or 0.45% of loans.

• Book value per share increased to $52.72, and tangible book value per share to $41.76 at quarter-end.

Outlook and guidance

• Management expects available cash and dividends from the bank subsidiary to be sufficient for funding and cash needs over the next 12 months.

• Guidance remains subject to risks outlined in the latest 10-K and ongoing economic and market developments.

• No material impact is expected from recent tax law changes (OBBBA) on future financial statements.