City Holding Company (CHCO) Q3 2025 earnings summary

Executive summary

• Net income for the nine months ended September 30, 2025 was $98.9 million, up from $88.4 million year-over-year, with EPS rising to $6.76 basic and $6.75 diluted from $5.96 in 2024.

• Achieved record quarterly net income of $35.2 million and diluted EPS of $2.41 for Q3 2025, driven by strong loan growth, higher net interest income, and stable credit quality.

• Return on average assets (ROA) for the nine months was 2.01%, and return on average equity (ROE) was 17.4%.

• Return on assets was 2.11% and return on tangible equity reached 22.5% for the quarter.

Financial highlights

• Net interest income for the nine months increased to $175.8 million from $164.7 million year-over-year; net interest margin rose to 3.95% from 3.90%.

• Net interest income rose 3.7% sequentially to $61.1 million; net interest margin increased to 4.04%.

• Non-interest income rose to $58.1 million from $57.2 million, driven by higher wealth management and service fees.

• Non-interest expenses increased to $114.5 million from $110.3 million, mainly due to higher salaries, equipment, and bankcard expenses.

• Efficiency ratio improved to 46.0% from 49.0% in the prior quarter.

Outlook and guidance

• Management expects continued strong liquidity and capital positions, with no material impact anticipated from recent tax law changes.

• Dividend payments are expected to approximate $47.4 million annually, and available cash and borrowing capacity are considered sufficient for the next 12 months.

• Management highlighted forward-looking risks including economic conditions, credit quality, interest rate changes, and regulatory factors.