Bankroll – HSMC Ohio http://hsmcohio.com/ Fri, 24 Sep 2021 03:03:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://hsmcohio.com/wp-content/uploads/2021/04/default-150x150.png Bankroll – HSMC Ohio http://hsmcohio.com/ 32 32 Synchrony to Report Third Quarter 2021 Financial Results on October 19, 2021 | New https://hsmcohio.com/synchrony-to-report-third-quarter-2021-financial-results-on-october-19-2021-new/ https://hsmcohio.com/synchrony-to-report-third-quarter-2021-financial-results-on-october-19-2021-new/#respond Fri, 24 Sep 2021 03:03:15 +0000 https://hsmcohio.com/synchrony-to-report-third-quarter-2021-financial-results-on-october-19-2021-new/ STAMFORD, Connecticut., September 23, 2021 / PRNewswire / – Synchrony (NYSE: SYF) expects to release its third quarter 2021 results on Tuesday, October 19, 2021. Publication of results and presentation materials should be published and published in the Investor Relations section of the Company’s website, www.investors.synchronyfinancial.com, around 6:00 a.m. Eastern Time. A conference call to […]]]>

STAMFORD, Connecticut., September 23, 2021 / PRNewswire / – Synchrony (NYSE: SYF) expects to release its third quarter 2021 results on Tuesday, October 19, 2021. Publication of results and presentation materials should be published and published in the Investor Relations section of the Company’s website, www.investors.synchronyfinancial.com, around 6:00 a.m. Eastern Time. A conference call to discuss the results of Synchrony will be held at 8:00 a.m. Eastern Time That day; the live audio webcast and replay can be accessed through the same website under Events and Presentations.

About synchronization

Synchrony (NYSE: SYF) is a leading consumer financial services company. We offer a wide range of specialized financing programs, as well as innovative banking products for consumers, in key industries such as digital, retail, home, automotive, travel, health and animals. of company. Synchrony allows our partners to increase their sales and retain consumers. We are one of the largest private label credit card issuers in United States; we also offer co-branded products, installment loans and consumer finance products for small and medium-sized businesses, as well as healthcare providers.

Synchrony is changing what’s possible with our digital capabilities, deep industry expertise, actionable data insights, seamless customer experience, and personalized financing solutions.

For more information visit www.synchrony.com and Twitter: @Synchrony.

Contacts

Investor Relations:

Catherine miller

(203) 585-6291

kathryn.miller@syf.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/synchrony-to-announce-third-quarter-2021-financial-results-on-october-19-2021-301383141.html

SOURCE Synchrony Financial


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Cathay General Bancorp (NASDAQ: CATY) sees significant increase in short interest https://hsmcohio.com/cathay-general-bancorp-nasdaq-caty-sees-significant-increase-in-short-interest/ https://hsmcohio.com/cathay-general-bancorp-nasdaq-caty-sees-significant-increase-in-short-interest/#respond Thu, 23 Sep 2021 19:03:08 +0000 https://hsmcohio.com/cathay-general-bancorp-nasdaq-caty-sees-significant-increase-in-short-interest/ Cathay General Bancorp (NASDAQ: CATY) benefited from strong growth in short-term interest during August. As of August 31, there was short interest totaling 1,530,000 shares, an increase of 21.4% from the total of 1,260,000 shares as of August 15. Currently, 2.1% of the company’s shares are sold short. Based on an average daily volume of […]]]>

Cathay General Bancorp (NASDAQ: CATY) benefited from strong growth in short-term interest during August. As of August 31, there was short interest totaling 1,530,000 shares, an increase of 21.4% from the total of 1,260,000 shares as of August 15. Currently, 2.1% of the company’s shares are sold short. Based on an average daily volume of 289,300 shares, the day-to-coverage ratio is currently 5.3 days.

Several stock analysts recently published reports on CATY shares. Truist Securities raised its target price on Cathay General Bancorp from $ 40.00 to $ 44.00 and gave the stock a “hold” rating in a research report released on Monday, August 30. DA Davidson reaffirmed a “neutral” rating on Cathay General Bancorp shares in a research report on Wednesday, July 28. Truist raised its target price on Cathay General Bancorp from $ 40.00 to $ 44.00 and gave the stock a “hold” rating in a research report on Monday, August 30. Ultimately, Zacks investment research upgraded Cathay General Bancorp from a “hold” rating to a “buy” rating and set a price target of $ 45 for the company in a research report released on Wednesday, September 1. Four analysts rated the stock with a conservation rating and one assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Cathay General Bancorp has an average “Hold” rating and a consensus price target of $ 45.

Actions of Cathay General Bancorp shares open for $ 38.96 Thursday. Cathay General Bancorp has a 12 month low of $ 20.59 and a 12 month high of $ 45.19. The stock has a market cap of $ 3.05 billion, a P / E ratio of 11.16 and a beta of 1.51. The company has a quick ratio of 1.05, a current ratio of 1.05, and a debt ratio of 0.07. The company’s 50-day moving average is $ 38.88 and its 200-day moving average is $ 40.31.

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Cathay General Bancorp (NASDAQ: CATY) last released its quarterly results on Sunday, July 25. The bank reported earnings of $ 0.97 per share for the quarter, beating analyst consensus estimates of $ 0.83 by $ 0.14. Cathay General Bancorp recorded a return on equity of 11.47% and a net margin of 39.05%. The company posted revenue of $ 160.58 million for the quarter, compared to analysts’ expectations of $ 156.05 million. On average, sell-side analysts expect Cathay General Bancorp to post an EPS of 3.72 for the current year.

The company also recently declared a quarterly dividend, which was paid on Thursday, September 9. Investors of record on Monday, August 30, received a dividend of $ 0.31. This represents a dividend of $ 1.24 on an annualized basis and a return of 3.18%. The ex-dividend date of this dividend was Friday, August 27. Cathay General Bancorp’s dividend payout ratio (DPR) is currently 43.21%.

In other news from Cathay General Bancorp, Vice President Peter Wu sold 20,000 shares of the company in a transaction dated Friday, August 27. The stock was sold for an average price of $ 39.74, for a total trade of $ 794,800.00. The sale was disclosed in a legal file with the Securities & Exchange Commission, which is available through this link. Insiders own 4.23% of the company’s shares.

A number of institutional investors and hedge funds have recently bought and sold shares of CATY. Commerce Bank increased its stake in Cathay General Bancorp by 3.4% in the 1st quarter. Commerce Bank now owns 16,110 shares of the bank valued at $ 657,000 after acquiring an additional 525 shares during the period. PNC Financial Services Group Inc. increased its stake in Cathay General Bancorp by 2.7% in the 1st quarter. PNC Financial Services Group Inc. now owns 9,507 shares of the bank valued at $ 388,000 after acquiring an additional 250 shares during the period. IndexIQ Advisors LLC increased its stake in Cathay General Bancorp by 6.1% in the 1st quarter. IndexIQ Advisors LLC now owns 9,683 shares of the bank valued at $ 395,000 after acquiring an additional 557 shares during the period. The Swiss National Bank increased its stake in Cathay General Bancorp by 0.9% in the first quarter. The Swiss National Bank now owns 172,900 shares of the bank valued at $ 7,051,000 after acquiring an additional 1,600 shares during the period. Finally, Cibc World Markets Corp bought a new stake in Cathay General Bancorp in the 1st quarter for a value of $ 327,000. Institutional investors and hedge funds hold 68.73% of the company’s shares.

Cathay General Bancorp Company Profile

Cathay General Bancorp is a holding company which provides financial services. It offers commercial mortgages, business loans, small business administration loans, residential mortgages, real estate construction loans, home equity lines of credit and personal installment loans for expenses. automobiles, housework and other consumer expenses.

See also: What is a conference call?

This instant news alert was powered by storytelling technology and financial data from MarketBeat to provide readers with the fastest, most accurate reports. This story was reviewed by the MarketBeat editorial team prior to publication. Please send any questions or comments about this story to [email protected]

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City Holding Company Announces Second Quarter Results https://hsmcohio.com/city-holding-company-announces-second-quarter-results/ https://hsmcohio.com/city-holding-company-announces-second-quarter-results/#respond Mon, 26 Apr 2021 05:12:39 +0000 https://hsmcohio.com/?p=443 CHARLESTON, W. Va–(BUSINESS WIRE)–City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $5.5 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $18.3 million and diluted earnings of $1.12 per share for the quarter ended June 30, 2020. For the second quarter of 2020, the Company achieved a return on […]]]>

CHARLESTON, W. Va–()–City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $5.5 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $18.3 million and diluted earnings of $1.12 per share for the quarter ended June 30, 2020. For the second quarter of 2020, the Company achieved a return on assets of 1.35% and a return on tangible equity of 12.6%.

Charles R. (“Skip”) Hageboeck, the President and Chief Executive Officer of City Holding Company, commented: “As the impact of COVID-19 continues to disrupt the communities that we serve and economic conditions of the United States and worldwide, City was able to produce results that we believe will compare very favorably amongst our peers. As we operate under these conditions, our staff members continue to provide excellent service to our customers via our drive-thrus, limited in-person branch appointments and our various electronic options, including our mobile platform which recently underwent a successful and well received upgrade. For the third year in a row, J.D. Power recognized City for its exceptional customer service by naming City for providing the highest level of customer satisfaction in the north central region of the U.S.”

“In early April our retail and commercial staff were very busy assisting our customers in obtaining Paycheck Protection Program (“PPP”) loans administered by the Small Business Administration (“SBA”). As a result of these efforts and the demand level of our customers, City originated over 1,500 PPP loans totaling over $85 million, with an average balance of approximately $60,000 per PPP loan. As a result of these loans, City recognized approximately $0.3 million of loan fees in the quarter ended June 30, 2020 and expects to recognize approximately $3.0 million, net of associated expenses, over the life of these PPP loans.”

“As of June 30, 2020, approximately $430 million of commercial loans have been granted deferrals as compared to approximately $380 million as of April 24, 2020, while approximately $125 million of mortgage loans have been granted deferrals as June 30, 2020, as compared to approximately $80 million at April 24, 2020. At June 30, 2020, approximately $260 million of the commercial loan deferments were for hotel and lodging related loans. We know that our hotel and lodging loan customers continue to suffer low demand as a result of reduced business and personal travel. However, we are encouraged by reports from certain hotel and lodging loan customers that, although still depressed compared to pre-pandemic periods, occupancy rates have improved during the past 30-45 days.”

Net Interest Income

The Company’s net interest income decreased from $40.4 million during the first quarter of 2020 to $38.1 million during the second quarter of 2020. During the second quarter of 2020, the Company’s tax equivalent net interest income decreased $2.3 million, or 5.7%, from $40.6 million for the first quarter of 2020 to $38.3 million for the second quarter of 2020. Lower loan yields (42 basis points) and lower investment yields (34 basis points) decreased net interest income by $3.8 million and $0.9 million, respectively. City has approximately $715 million of commercial loans tied to LIBOR rates, and the average 3 month Libor rate fell from 1.40% in for the quarter ended March 31, 2020 to 0.35% for the quarter ended June 30, 2020. The yield on investment securities decreased predominantly as a result of additional securities purchased in the quarter ended June 30, 2020 due to increased liquidity. Approximately $100 million of new securities were purchased that are tied to one month LIBOR rates and approximately $80 million of additional securities were purchased at lower yields than our overall portfolio yield. These decreases were partially offset by a decrease in rates paid on deposits (20 basis points) and an increase in average loan balances ($51.3 million) which increased net interest income by $1.5 million and $0.6 million, respectively. The Company’s reported net interest margin decreased from 3.54% for the first quarter of 2020 to 3.13% for the second quarter of 2020. Excluding the favorable impact of the accretion from fair value adjustments, the net interest margin would have been 3.05% for the quarter ended June 30, 2020 and 3.40% for the quarter ended March 31, 2020.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned increased slightly from 0.44% at March 31, 2020 to 0.48% at June 30, 2020. Total nonperforming assets increased from $16.0 million at March 31, 2020 to $17.6 million at June 30, 2020. Total past due loans decreased from $10.0 million, or 0.28% of total loans outstanding, at March 31, 2020 to $7.1 million, or 0.19% of total loans outstanding, at June 30, 2020.

As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses (“ACL”), the Company recorded a provision for credit losses of $1.25 million in the second quarter of 2020, compared to a recovery of loan loss provision of $0.6 million for the comparable period in 2019 and a provision for credit losses of $8.0 million for the first quarter of 2020. The provision for credit losses is largely dependent on expected unemployment ranges. The expected unemployment ranges utilized at June 30, 2020, have not changed significantly from those utilized at March 31, 2020 which reflected the expected economic impact of the COVID-19 pandemic. Additionally, adjustments in qualitative and other factors have not been revised significantly from March 31, 2020, to June 30, 2020. The provision for credit losses recognized in the second quarter of 2020 primarily relates to updated valuations for two specific credits during the quarter based on current market conditions which increased the Company’s ACL by $1.7 million. Partially offsetting these increases in the ACL was a decrease in the ACL due to lower amounts of DDA overdrafted balances which released $0.5 million of ACL reserves. Due to the guarantee from the SBA for the PPP loans that were issued during the quarter ended June 30, 2020, no reserve for credit losses was deemed necessary for these loans.

Non-interest Income

Non-interest income was $14.6 million for the second quarter of 2020 as compared to $17.8 million for the second quarter of 2019. During the second quarter of 2020, the Company reported $0.2 million of unrealized fair value gains on the Company’s equity securities compared to $0.1 million of unrealized fair value gains on the Company’s equity securities in the second quarter of 2019. Exclusive of these gains, non-interest income decreased from $17.7 million for the second quarter of 2019 to $14.4 million for the second quarter of 2020. This decrease was largely attributable to a decrease of $2.8 million, or 36.4%, in service charges as average deposit balances have increased during the COVID-19 pandemic. In addition, other income decreased $0.8 million due to recognition of a $0.7 million gain from the sale of our Virginia Beach, VA, branch in June 2019. These decreases were partially offset by increases in our bankcard revenues ($0.4 million) and trust and investment management fee income ($0.2 million).

Non-interest Expenses

During the quarter ended June 30, 2019, the Company incurred an additional $0.5 million of acquisition and integration expenses associated with the acquisitions of Poage Bankshare, Inc. and Farmers Deposit Bankcorp, Inc. Excluding this expense, non-interest expenses decreased $1.8 million (5.8%), from $30.2 million in the second quarter of 2019 to $28.5 million in the second quarter of 2020. This decrease was primarily due to a decrease in salaries and employee benefits of $0.9 million due primarily to lower health insurance and incentive expenses. Additionally, other expenses decreased $0.5 million, occupancy related expenses decreased $0.2 million, FDIC expense decreased $0.2 million and repossessed asset losses decreased $0.2 million. These decreases were partially offset by an increase in equipment and software related expenses of $0.3 million.

Balance Sheet Trends

Loans increased $49.5 million (1.4%) from December 31, 2019 to $3.67 billion at June 30, 2020. As a result of the Company’s participation in the PPP loans administered by the SBA, commercial and industrial loans increased $88.4 million. Excluding PPP loans, total loans decreased $39.0 million, (1.1%), from December 31, 2019 to $3.58 billion at June 30, 2020. Commercial and industrial loans decreased $27.4 million (8.9%) (excluding PPP loans), residential real estate loans decreased $9.3 million (0.6%), home equity loans decreased $6.3 million (4.2%) and DDA overdrafts decreased $2.1 million (43.3%). These decreases were partially offset by an increase in commercial real estate loans of $7.9 million (0.5%).

Total average depository balances increased $235.4 million, or 5.8%, from the quarter ended March 31, 2020 to the quarter ended June 30, 2020. Average noninterest-bearing demand deposit balances increased $191.6 million, average savings deposit balances increased $31.6 million, and average interest-bearing demand deposit balances increased $23.9 million. We believe that these increases were largely attributable to stimulus checks received by our customers from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (approximately $90 million) and proceeds from PPP loans (approximately $90 million). These increases were partially offset by a decrease in time deposit balances of $11.6 million.

Income Tax Expense

The Company’s effective income tax rate for the second quarter of 2020 was 20.6% compared to 21.3% for the year ended December 31, 2019, and 20.4% for the quarter ended June 30, 2019.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 83.1% and the loan to asset ratio was 66.3% at June 30, 2020. The Company maintained investment securities totaling 19.6% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 55.5% of assets at June 30, 2020. Time deposits fund 24.3% of assets at June 30, 2020, but very few of these deposits are in accounts that have balances of more than $250,000, reflecting the core retail orientation of the Company.

The Company continues to be strongly capitalized. The Company’s tangible equity ratio decreased from 11.0% at December 31, 2019 to 10.6% at June 30, 2020. At June 30, 2020, City National Bank’s Leverage Ratio was 9.29%, its Common Equity Tier I ratio was 14.55%, its Tier I Capital ratio was 14.55%, and its Total Risk-Based Capital ratio was 15.15%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On June 24, 2020, the Board of Directors of the Company approved a quarterly cash dividend of $0.57 per share payable July 31, 2020, to shareholders of record as of July 15, 2020. During the quarter ended June 30, 2020, the Company repurchased 79,000 common shares at a weighted average price of $61.75 as part of a one million share repurchase plan authorized by the Board of Directors in February 2019. As of June 30, 2020, the Company could repurchase approximately 478,000 additional shares under the plan.

City Holding Company is the parent company of City National Bank of West Virginia. City National Bank operates 94 branches across West Virginia, Kentucky, Virginia, and Ohio.

Forward-Looking Information

  • This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, especially in the communities and markets in which we conduct our business; (2) the uncertainties on the Company’s business, results of operations and financial condition, caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its continued influence on financial markets, the effectiveness of the Company’s work from home arrangements and staffing levels in operational facilities, the impact of market participants on which the Company relies and actions taken by governmental authorities and other third parties in response to the pandemic; (3) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for loan losses may not be sufficient to absorb actual losses in our loan portfolio, and risk from concentrations in our loan portfolio; (4) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (5) changes in the interest rate environment; (6) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (7) changes in technology and increased competition, including competition from non-bank financial institutions; (8) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (9) difficulty growing loan and deposit balances; (10) our ability to effectively execute our business plan, including with respect to future acquisitions; (11) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries; (12) deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions; (13) regulatory enforcement actions and adverse legal actions; (14) difficulty attracting and retaining key employees; (15) other economic, competitive, technological, operational, governmental, regulatory, and market factors affecting our operations. Forward-looking statements made herein reflect management’s expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. Further, the Company is required to evaluate subsequent events through the filing of its June 30, 2020 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary June 30, 2020 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES

Financial Highlights
(Unaudited)
 
Three Months Ended Six Months Ended
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 June 30, 2020 June 30, 2019
 
Earnings
Net Interest Income (fully taxable equivalent)

$

38,287

 

$

40,603

 

$

40,036

 

$

40,729

 

$

41,113

 

$

78,892

 

$

81,387

 

Net Income available to common shareholders

 

18,251

 

 

29,000

 

 

22,611

 

 

22,371

 

 

22,751

 

 

47,249

 

 

44,370

 

 
Per Share Data
Earnings per share available to common shareholders:
Basic

$

1.12

 

$

1.79

 

$

1.38

 

$

1.36

 

$

1.38

 

$

2.90

 

$

2.68

 

Diluted

 

1.12

 

 

1.78

 

 

1.38

 

 

1.36

 

 

1.38

 

 

2.90

 

 

2.68

 

Weighted average number of shares (in thousands):
Basic

 

16,081

 

 

16,080

 

 

16,207

 

 

16,271

 

 

16,368

 

 

16,123

 

 

16,390

 

Diluted

 

16,097

 

 

16,101

 

 

16,230

 

 

16,289

 

 

16,386

 

 

16,142

 

 

16,408

 

Period-end number of shares (in thousands)

 

16,077

 

 

16,140

 

 

16,303

 

 

16,302

 

 

16,397

 

 

16,077

 

 

16,397

 

Cash dividends declared

$

0.57

 

$

0.57

 

$

0.57

 

$

0.57

 

$

0.53

 

$

1.14

 

$

1.06

 

Book value per share (period-end)

$

43.15

 

$

42.45

 

$

40.36

 

$

39.85

 

$

38.84

 

$

43.15

 

$

38.84

 

Tangible book value per share (period-end)

 

35.72

 

 

35.03

 

 

32.98

 

 

32.44

 

 

31.44

 

 

35.72

 

 

31.44

 

Market data:
High closing price

$

71.19

 

$

82.40

 

$

82.72

 

$

78.30

 

$

82.56

 

$

82.40

 

$

82.56

 

Low closing price

 

55.18

 

 

57.11

 

 

74.33

 

 

72.35

 

 

73.05

 

 

55.18

 

 

67.58

 

Period-end closing price

 

65.17

 

 

66.53

 

 

81.95

 

 

76.25

 

 

76.26

 

 

65.17

 

 

76.26

 

Average daily volume (in thousands)

 

89

 

 

69

 

 

54

 

 

62

 

 

53

 

 

79

 

 

53

 

Treasury share activity:
Treasury shares repurchased (in thousands)

 

79

 

 

182

 

 

 

 

99

 

 

107

 

 

261

 

 

162

 

Average treasury share repurchase price

$

61.75

 

$

71.31

 

$

 

$

74.17

 

$

74.81

 

$

68.41

 

$

74.77

 

 
Key Ratios (percent)
Return on average assets

 

1.35

%

 

2.29

%

 

1.80

%

 

1.81

%

 

1.84

%

 

1.81

%

 

1.80

%

Return on average tangible equity

 

12.6

%

 

20.6

%

 

16.8

%

 

17.0

%

 

17.9

%

 

16.6

%

 

17.8

%

Yield on interest earning assets

 

3.64

%

 

4.22

%

 

4.22

%

 

4.42

%

 

4.48

%

 

3.92

%

 

4.48

%

Cost of interest bearing liabilities

 

0.71

%

 

0.91

%

 

1.00

%

 

1.10

%

 

1.09

%

 

0.81

%

 

1.07

%

Net Interest Margin

 

3.13

%

 

3.54

%

 

3.46

%

 

3.59

%

 

3.65

%

 

3.33

%

 

3.66

%

Non-interest income as a percent of total revenue

 

27.4

%

 

30.6

%

 

31.2

%

 

29.2

%

 

30.3

%

 

37.9

%

 

29.4

%

Efficiency Ratio

 

53.3

%

 

49.7

%

 

50.0

%

 

48.2

%

 

50.5

%

 

51.4

%

 

50.9

%

Price/Earnings Ratio (a)

 

14.50

 

 

17.63

 

 

14.82

 

 

13.98

 

 

13.84

 

 

11.23

 

 

14.21

 

 
Capital (period-end)
Average Shareholders’ Equity to Average Assets

 

12.91

%

 

13.50

%

 

13.12

%

 

13.12

%

 

12.76

%

Tangible equity to tangible assets

 

10.62

%

 

11.38

%

 

10.98

%

 

10.93

%

 

10.70

%

Consolidated City Holding Company risk based capital ratios (b):
CET I

 

16.10

%

 

16.02

%

 

16.05

%

 

15.62

%

 

15.91

%

Tier I

 

16.10

%

 

16.02

%

 

16.05

%

 

15.74

%

 

16.03

%

Total

 

16.69

%

 

16.46

%

 

16.40

%

 

16.14

%

 

16.47

%

Leverage

 

10.45

%

 

11.10

%

 

10.90

%

 

10.87

%

 

10.70

%

City National Bank risk based capital ratios (b):
CET I

 

14.55

%

 

14.32

%

 

13.92

%

 

14.00

%

 

14.19

%

Tier I

 

14.55

%

 

14.32

%

 

13.92

%

 

14.00

%

 

14.19

%

Total

 

15.15

%

 

14.82

%

 

14.28

%

 

14.40

%

 

14.63

%

Leverage

 

9.29

%

 

9.98

%

 

9.51

%

 

9.72

%

 

9.51

%

 
Other (period-end)
Branches

 

94

 

 

95

 

 

95

 

 

95

 

 

95

 

FTE

 

913

 

 

921

 

 

918

 

 

916

 

 

935

 

 
Assets per FTE (in thousands)

$

6,058

 

$

5,525

 

$

5,467

 

$

5,412

 

$

5,284

 

Deposits per FTE (in thousands)

 

4,834

 

 

4,400

 

 

4,440

 

 

4,399

 

 

4,312

 

 
 
(a) The price/earnings ratio is computed based on annualized quarterly earnings (excludes gain for sale of VISA shares, net of taxes).
(b) June 30, 2020 risk-based capital ratios are estimated.
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
 
Three Months Ended Six Months Ended
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 June 30, 2020 June 30, 2019
 
Interest Income
Interest and fees on loans

$

37,718

 

$

41,335

 

$

41,615

 

$

42,944

 

$

43,174

 

$

79,053

 

$

85,453

 

Interest on investment securities:
Taxable

 

5,718

 

 

5,871

 

 

5,924

 

 

6,044

 

 

5,732

 

 

11,589

 

 

11,421

 

Tax-exempt

 

821

 

 

707

 

 

711

 

 

722

 

 

755

 

 

1,528

 

 

1,534

 

Interest on deposits in depository institutions

 

55

 

 

304

 

 

298

 

 

271

 

 

577

 

 

360

 

 

763

 

Total Interest Income

 

44,312

 

 

48,217

 

 

48,548

 

 

49,981

 

 

50,238

 

 

92,530

 

 

99,171

 

 
Interest Expense
Interest on deposits

 

5,963

 

 

7,238

 

 

7,897

 

 

8,585

 

 

8,417

 

 

13,201

 

 

16,184

 

Interest on short-term borrowings

 

279

 

 

464

 

 

762

 

 

814

 

 

863

 

 

743

 

 

1,915

 

Interest on long-term debt

 

 

 

100

 

 

42

 

 

45

 

 

47

 

 

100

 

 

95

 

Total Interest Expense

 

6,242

 

 

7,802

 

 

8,701

 

 

9,444

 

 

9,327

 

 

14,044

 

 

18,194

 

Net Interest Income

 

38,070

 

 

40,415

 

 

39,847

 

 

40,537

 

 

40,911

 

 

78,486

 

 

80,977

 

Provision for (recovery of) credit losses

 

1,250

 

 

7,972

 

 

(75

)

 

274

 

 

(600

)

 

9,222

 

 

(1,449

)

Net Interest Income After Provision for (Recovery of) Credit Losses

 

36,820

 

 

32,443

 

 

39,922

 

 

40,263

 

 

41,511

 

 

69,264

 

 

82,426

 

 
Non-Interest Income
Net (losses) gains on sale of investment securities

 

(6

)

 

63

 

 

 

 

(40

)

 

21

 

 

56

 

 

109

 

Unrealized gains (losses) recognized on equity securities still held

 

242

 

 

(2,402

)

 

914

 

 

(214

)

 

113

 

 

(2,159

)

 

188

 

Service charges

 

4,945

 

 

7,723

 

 

8,233

 

 

8,183

 

 

7,778

 

 

12,667

 

 

15,099

 

Bankcard revenue

 

5,888

 

 

5,115

 

 

5,162

 

 

5,440

 

 

5,522

 

 

11,003

 

 

10,491

 

Trust and investment management fee income

 

1,931

 

 

1,799

 

 

2,016

 

 

1,802

 

 

1,699

 

 

3,730

 

 

3,341

 

Bank owned life insurance

 

848

 

 

1,676

 

 

856

 

 

762

 

 

1,132

 

 

2,523

 

 

2,148

 

Sale of VISA shares

 

 

 

17,837

 

 

 

 

 

 

 

 

17,837

 

 

 

Other income

 

783

 

 

1,536

 

 

861

 

 

765

 

 

1,560

 

 

2,318

 

 

2,374

 

Total Non-Interest Income

 

14,631

 

 

33,347

 

 

18,042

 

 

16,698

 

 

17,825

 

 

47,975

 

 

33,750

 

 
Non-Interest Expense
Salaries and employee benefits

 

14,873

 

 

15,851

 

 

15,918

 

 

15,210

 

 

15,767

 

 

30,724

 

 

31,010

 

Occupancy related expense

 

2,402

 

 

2,488

 

 

2,540

 

 

2,725

 

 

2,598

 

 

4,890

 

 

5,330

 

Equipment and software related expense

 

2,504

 

 

2,429

 

 

2,302

 

 

2,248

 

 

2,223

 

 

4,933

 

 

4,414

 

FDIC insurance expense

 

167

 

 

 

 

 

 

 

 

347

 

 

167

 

 

638

 

Advertising

 

933

 

 

843

 

 

694

 

 

861

 

 

920

 

 

1,776

 

 

1,789

 

Bankcard expenses

 

1,498

 

 

1,435

 

 

1,285

 

 

1,554

 

 

1,534

 

 

2,933

 

 

2,716

 

Postage, delivery, and statement mailings

 

592

 

 

616

 

 

588

 

 

659

 

 

545

 

 

1,208

 

 

1,169

 

Office supplies

 

353

 

 

394

 

 

392

 

 

382

 

 

399

 

 

747

 

 

785

 

Legal and professional fees

 

589

 

 

601

 

 

706

 

 

539

 

 

605

 

 

1,190

 

 

1,126

 

Telecommunications

 

531

 

 

511

 

 

563

 

 

569

 

 

597

 

 

1,042

 

 

1,323

 

Repossessed asset losses (gains), net of expenses

 

76

 

 

198

 

 

224

 

 

(59

)

 

253

 

 

274

 

 

469

 

Merger related expenses

 

 

 

 

 

 

 

 

 

547

 

 

 

 

797

 

Other expenses

 

3,950

 

 

4,102

 

 

3,822

 

 

3,709

 

 

4,437

 

 

8,052

 

 

8,617

 

Total Non-Interest Expense

 

28,468

 

 

29,468

 

 

29,034

 

 

28,397

 

 

30,772

 

 

57,936

 

 

60,183

 

Income Before Income Taxes

 

22,983

 

 

36,322

 

 

28,930

 

 

28,564

 

 

28,564

 

 

59,303

 

 

55,993

 

Income tax expense

 

4,732

 

 

7,322

 

 

6,319

 

 

6,193

 

 

5,813

 

 

12,054

 

 

11,623

 

Net Income Available to Common Shareholders

$

18,251

 

$

29,000

 

$

22,611

 

$

22,371

 

$

22,751

 

$

47,249

 

$

44,370

 

 
Distributed earnings allocated to common shareholders

$

9,073

 

$

9,117

 

$

9,209

 

$

9,213

 

$

8,615

 

$

18,147

 

$

17,231

 

Undistributed earnings allocated to common shareholders

 

8,998

 

 

19,620

 

 

13,200

 

 

12,966

 

 

13,939

 

 

28,639

 

 

26,757

 

Net earnings allocated to common shareholders

$

18,071

 

$

28,737

 

$

22,409

 

$

22,179

 

$

22,554

 

$

46,786

 

$

43,988

 

 
Average common shares outstanding

 

16,081

 

 

16,080

 

 

16,207

 

 

16,271

 

 

16,368

 

 

16,123

 

 

16,390

 

Shares for diluted earnings per share

 

16,097

 

 

16,101

 

 

16,230

 

 

16,289

 

 

16,386

 

 

16,142

 

 

16,408

 

 
Basic earnings per common share

$

1.12

 

$

1.79

 

$

1.38

 

$

1.36

 

$

1.38

 

$

2.90

 

$

2.68

 

Diluted earnings per common share

$

1.12

 

$

1.78

 

$

1.38

 

$

1.36

 

$

1.38

 

$

2.90

 

$

2.68

 

 
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019
 
Assets
Cash and due from banks

$

87,658

 

$

92,365

 

$

88,658

 

$

71,332

 

$

53,373

 

Interest-bearing deposits in depository institutions

 

285,596

 

 

18,271

 

 

51,486

 

 

44,862

 

 

115,346

 

Cash and cash equivalents

 

373,254

 

 

110,636

 

 

140,144

 

 

116,194

 

 

168,719

 

 
Investment securities available-for-sale, at fair value

 

1,055,185

 

 

934,113

 

 

810,106

 

 

798,930

 

 

796,237

 

Investment securities held-to-maturity, at amortized cost

 

 

 

 

 

49,036

 

 

51,211

 

 

53,362

 

Other securities

 

26,144

 

 

26,827

 

 

28,490

 

 

28,070

 

 

28,014

 

Total investment securities

 

1,081,329

 

 

960,940

 

 

887,632

 

 

878,211

 

 

877,613

 

 
Gross loans

 

3,665,596

 

 

3,613,050

 

 

3,616,099

 

 

3,582,571

 

 

3,519,367

 

Allowance for credit losses

 

(25,199

)

 

(24,393

)

 

(11,589

)

 

(13,186

)

 

(13,795

)

Net loans

 

3,640,397

 

 

3,588,657

 

 

3,604,510

 

 

3,569,385

 

 

3,505,572

 

 
Bank owned life insurance

 

116,746

 

 

116,000

 

 

115,261

 

 

114,616

 

 

113,855

 

Premises and equipment, net

 

77,991

 

 

78,948

 

 

76,965

 

 

76,929

 

 

78,263

 

Accrued interest receivable

 

14,200

 

 

12,570

 

 

11,569

 

 

12,929

 

 

12,719

 

Net deferred tax assets

 

 

 

2,159

 

 

6,669

 

 

6,432

 

 

8,835

 

Intangible assets

 

119,417

 

 

119,829

 

 

120,241

 

 

120,773

 

 

121,322

 

Other assets

 

105,438

 

 

98,710

 

 

55,765

 

 

62,248

 

 

53,569

 

Total Assets

$

5,528,772

 

$

5,088,449

 

$

5,018,756

 

$

4,957,717

 

$

4,940,467

 

 
Liabilities
Deposits:
Noninterest-bearing

$

1,079,469

 

$

857,501

 

$

805,087

 

$

795,548

 

$

798,056

 

Interest-bearing:
Demand deposits

 

921,761

 

 

837,966

 

 

896,465

 

 

898,704

 

 

891,742

 

Savings deposits

 

1,067,254

 

 

989,609

 

 

1,009,771

 

 

980,539

 

 

974,847

 

Time deposits

 

1,342,631

 

 

1,366,977

 

 

1,364,571

 

 

1,354,787

 

 

1,366,991

 

Total deposits

 

4,411,115

 

 

4,052,053

 

 

4,075,894

 

 

4,029,578

 

 

4,031,636

 

Short-term borrowings
Federal Funds purchased

 

 

 

9,900

 

 

 

 

 

 

 

Customer repurchase agreements

 

282,676

 

 

224,247

 

 

211,255

 

 

202,622

 

 

207,033

 

Long-term debt

 

 

 

 

 

4,056

 

 

4,055

 

 

4,054

 

Net deferred tax liabilities

 

2,598

 

 

 

 

 

 

 

 

 

Other liabilities

 

138,633

 

 

117,021

 

 

69,568

 

 

71,859

 

 

60,836

 

Total Liabilities

 

4,835,022

 

 

4,403,221

 

 

4,360,773

 

 

4,308,114

 

 

4,303,559

 

 
Stockholders’ Equity
Preferred stock

 

 

 

 

 

 

 

 

 

 

Common stock

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

Capital surplus

 

169,881

 

 

170,096

 

 

170,309

 

 

169,794

 

 

169,374

 

Retained earnings

 

565,804

 

 

556,718

 

 

539,253

 

 

525,933

 

 

512,911

 

Cost of common stock in treasury

 

(120,583

)

 

(116,665

)

 

(105,038

)

 

(105,138

)

 

(98,084

)

Accumulated other comprehensive income:
Unrealized gain on securities available-for-sale

 

37,299

 

 

33,730

 

 

12,110

 

 

17,266

 

 

10,959

 

Underfunded pension liability

 

(6,270

)

 

(6,270

)

 

(6,270

)

 

(5,871

)

 

(5,871

)

Total Accumulated Other Comprehensive Income

 

31,029

 

 

27,460

 

 

5,840

 

 

11,395

 

 

5,088

 

Total Stockholders’ Equity

 

693,750

 

 

685,228

 

 

657,983

 

 

649,603

 

 

636,908

 

Total Liabilities and Stockholders’ Equity

$

5,528,772

 

$

5,088,449

 

$

5,018,756

 

$

4,957,717

 

$

4,940,467

 

 
Regulatory Capital
Total CET 1 capital

$

548,972

 

$

547,040

 

$

532,829

 

$

518,175

 

$

511,344

 

Total tier 1 capital

 

548,972

 

 

547,040

 

 

532,829

 

 

522,175

 

 

515,344

 

Total risk-based capital

 

569,213

 

 

561,944

 

 

544,479

 

 

535,441

 

 

529,230

 

Total risk-weighted assets

 

3,410,589

 

 

3,412,591

 

 

3,319,998

 

 

3,318,386

 

 

3,214,153

 

 
CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
 
 
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019
 
Residential real estate (1)

$

1,631,151

$

1,629,578

$

1,640,396

$

1,643,416

$

1,644,494

Home equity – junior liens

 

142,672

 

146,034

 

148,928

 

150,808

 

150,676

Commercial and industrial

 

369,122

 

308,567

 

308,015

 

296,927

 

288,803

Commercial real estate (2)

 

1,467,673

 

1,470,949

 

1,459,737

 

1,431,983

 

1,378,116

Consumer

 

52,278

 

54,749

 

54,263

 

54,799

 

53,356

DDA overdrafts

 

2,700

 

3,173

 

4,760

 

4,638

 

3,922

Gross Loans

$

3,665,596

$

3,613,050

$

3,616,099

$

3,582,571

$

3,519,367

 
Construction loans included in:
(1) – Residential real estate loans

$

28,252

$

28,870

$

29,033

$

24,955

$

23,673

(2) – Commercial real estate loans

 

42,092

 

44,453

 

64,049

 

55,267

 

43,432

 
CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
 
Three Months Ended Six Months Ended
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 June 30, 2020 June 30, 2019
Allowance for Credit Losses
Balance at beginning of period

$

24,393

 

$

11,589

 

$

13,186

 

$

13,795

 

$

14,646

 

$

11,589

 

$

15,966

 

 
Charge-offs:
Commercial and industrial

 

 

 

(77

)

 

(193

)

 

(17

)

 

(51

)

 

(77

)

 

(51

)

Commercial real estate

 

(39

)

 

(383

)

 

(964

)

 

(216

)

 

(133

)

 

(422

)

 

(178

)

Residential real estate

 

(376

)

 

(483

)

 

(226

)

 

(194

)

 

(230

)

 

(859

)

 

(631

)

Home equity

 

(161

)

 

(45

)

 

(134

)

 

(43

)

 

(71

)

 

(206

)

 

(117

)

Consumer

 

(36

)

 

(55

)

 

(338

)

 

(279

)

 

(184

)

 

(91

)

 

(296

)

DDA overdrafts

 

(459

)

 

(703

)

 

(792

)

 

(772

)

 

(588

)

 

(1,162

)

 

(1,213

)

Total charge-offs

 

(1,071

)

 

(1,746

)

 

(2,647

)

 

(1,521

)

 

(1,257

)

 

(2,817

)

 

(2,486

)

 
Recoveries:
Commercial and industrial

 

5

 

 

9

 

 

581

 

 

43

 

 

5

 

 

14

 

 

140

 

Commercial real estate

 

128

 

 

203

 

 

10

 

 

7

 

 

575

 

 

331

 

 

607

 

Residential real estate

 

8

 

 

95

 

 

87

 

 

157

 

 

50

 

 

103

 

 

125

 

Home equity

 

9

 

 

47

 

 

 

 

 

 

 

 

56

 

 

 

Consumer

 

128

 

 

13

 

 

54

 

 

68

 

 

46

 

 

141

 

 

143

 

DDA overdrafts

 

349

 

 

451

 

 

393

 

 

363

 

 

330

 

 

800

 

 

749

 

Total recoveries

 

627

 

 

818

 

 

1,125

 

 

638

 

 

1,006

 

 

1,445

 

 

1,764

 

 
Net (charge-offs)/recoveries

 

(444

)

 

(928

)

 

(1,522

)

 

(883

)

 

(251

)

 

(1,372

)

 

(722

)

Provision for (recovery of) credit losses

 

1,250

 

 

7,972

 

 

(75

)

 

274

 

 

(600

)

 

9,222

 

 

(1,449

)

Impact of Adopting ASC 326

 

 

 

5,760

 

 

 

 

 

 

 

 

5,760

 

 

 

Balance at end of period

$

25,199

 

$

24,393

 

$

11,589

 

$

13,186

 

$

13,795

 

$

25,199

 

$

13,795

 

 
Loans outstanding

$

3,665,596

 

$

3,613,050

 

$

3,616,099

 

$

3,582,571

 

$

3,519,367

 

Allowance as a percent of loans outstanding

 

0.69

%

 

0.68

%

 

0.32

%

 

0.37

%

 

0.39

%

Allowance as a percent of non-performing loans

 

185.1

%

 

202.2

%

 

98.6

%

 

84.3

%

 

115.3

%

 
Average loans outstanding

$

3,660,174

 

$

3,608,868

 

$

3,607,864

 

$

3,544,548

 

$

3,539,077

 

$

3,634,522

 

$

3,557,927

 

Net charge-offs (recoveries) (annualized) as a percent of average loans outstanding

 

0.05

%

 

0.10

%

 

0.17

%

 

0.10

%

 

0.03

%

 

0.08

%

 

0.04

%

 
CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
 
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019
Nonaccrual Loans
Residential real estate

$

3,477

 

$

2,750

 

$

3,393

 

$

2,570

 

$

2,354

 

Home equity

 

265

 

 

249

 

 

531

 

 

469

 

 

161

 

Commercial and industrial

 

1,087

 

 

1,175

 

 

1,182

 

 

2,059

 

 

2,149

 

Commercial real estate

 

8,715

 

 

7,865

 

 

6,384

 

 

10,099

 

 

7,204

 

Consumer

 

 

 

1

 

 

 

 

 

 

 

Total nonaccrual loans

 

13,544

 

 

12,040

 

 

11,490

 

 

15,197

 

 

11,868

 

Accruing loans past due 90 days or more

 

68

 

 

26

 

 

267

 

 

452

 

 

94

 

Total non-performing loans

 

13,612

 

 

12,066

 

 

11,757

 

 

15,649

 

 

11,962

 

Other real estate owned

 

3,997

 

 

3,922

 

 

4,670

 

 

2,326

 

 

2,581

 

Total non-performing assets

$

17,609

 

$

15,988

 

$

16,427

 

$

17,975

 

$

14,543

 

 
Non-performing assets as a percent of loans and other real estate owned

 

0.48

%

 

0.44

%

 

0.45

%

 

0.50

%

 

0.41

%

 
Past Due Loans
Residential real estate

$

5,261

 

$

7,815

 

$

7,485

 

$

6,859

 

$

7,302

 

Home equity

 

393

 

 

430

 

 

956

 

 

796

 

 

322

 

Commercial and industrial

 

160

 

 

71

 

 

458

 

 

526

 

 

166

 

Commercial real estate

 

917

 

 

1,021

 

 

1,580

 

 

1,276

 

 

1,026

 

Consumer

 

67

 

 

177

 

 

187

 

 

124

 

 

172

 

DDA overdrafts

 

273

 

 

467

 

 

730

 

 

626

 

 

487

 

Total past due loans

$

7,071

 

$

9,981

 

$

11,396

 

$

10,207

 

$

9,475

 

 
Total past due loans as a percent of loans outstanding

 

0.19

%

 

0.28

%

 

0.32

%

 

0.28

%

 

0.27

%

 
Troubled Debt Restructurings (“TDRs”)
Residential real estate

$

20,631

 

$

21,413

 

$

21,029

 

$

21,320

 

$

22,373

 

Home equity

 

2,138

 

 

2,294

 

 

3,628

 

 

3,034

 

 

3,062

 

Commercial and industrial

 

 

 

 

 

 

 

83

 

 

83

 

Commercial real estate

 

4,915

 

 

5,163

 

 

4,973

 

 

8,100

 

 

8,044

 

Consumer

 

185

 

 

184

 

 

 

 

 

 

 

Total TDRs

$

27,869

 

$

29,054

 

$

29,630

 

$

32,537

 

$

33,562

 

 
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
 
Three Months Ended
June 30, 2020 March 31, 2020 June 30, 2019
Average Yield/ Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2)

$

1,785,631

 

$

19,048

4.29

%

$

1,780,473

 

$

19,881

4.49

%

$

1,783,718

 

$

20,454

 

4.60

%

Commercial, financial, and agriculture (2)

 

1,818,344

 

 

17,665

3.91

%

 

1,770,178

 

 

20,476

4.65

%

 

1,698,186

 

 

21,658

 

5.12

%

Installment loans to individuals (2), (3)

 

56,199

 

 

852

6.10

%

 

58,217

 

 

863

5.96

%

 

57,173

 

 

889

 

6.24

%

Previously securitized loans (4) ***

 

152

*** ***

 

115

*** ***

 

174

 

***
Total loans

 

3,660,174

 

 

37,717

4.14

%

 

3,608,868

 

 

41,335

4.61

%

 

3,539,077

 

 

43,175

 

4.89

%

Securities:
Taxable

 

896,997

 

 

5,718

2.56

%

 

810,766

 

 

5,871

2.91

%

 

749,346

 

 

5,732

 

3.07

%

Tax-exempt (5)

 

120,751

 

 

1,039

3.46

%

 

94,591

 

 

895

3.81

%

 

100,348

 

 

956

 

3.82

%

Total securities

 

1,017,748

 

 

6,757

2.67

%

 

905,357

 

 

6,766

3.01

%

 

849,694

 

 

6,688

 

3.16

%

Deposits in depository institutions

 

236,320

 

 

55

0.09

%

 

102,932

 

 

304

1.19

%

 

113,176

 

 

577

 

2.04

%

Total interest-earning assets

 

4,914,242

 

 

44,529

3.64

%

 

4,617,157

 

 

48,405

4.22

%

 

4,501,947

 

 

50,440

 

4.49

%

Cash and due from banks

 

79,501

 

 

70,763

 

 

64,478

 

Premises and equipment, net

 

78,717

 

 

77,368

 

 

79,116

 

Goodwill and intangible assets

 

119,681

 

 

120,091

 

 

121,628

 

Other assets

 

230,423

 

 

195,875

 

 

189,618

 

Less: Allowance for credit losses

 

(24,700

)

 

(15,905

)

 

(15,057

)

Total assets

$

5,397,864

 

$

5,065,349

 

$

4,941,730

 

 
Liabilities:
Interest-bearing demand deposits

$

893,832

 

$

178

0.08

%

$

869,976

 

$

468

0.22

%

$

874,039

 

$

909

 

0.42

%

Savings deposits

 

1,037,387

 

 

363

0.14

%

 

1,005,829

 

 

700

0.28

%

 

980,089

 

 

1,236

 

0.51

%

Time deposits (2)

 

1,353,619

 

 

5,422

1.61

%

 

1,365,268

 

 

6,070

1.79

%

 

1,384,017

 

 

6,272

 

1.82

%

Short-term borrowings

 

256,790

 

 

279

0.44

%

 

209,010

 

 

464

0.89

%

 

199,648

 

 

863

 

1.73

%

Long-term debt

 

 

 

0.00

%

 

3,340

 

 

100

12.04

%

 

4,053

 

 

47

 

4.65

%

Total interest-bearing liabilities

 

3,541,628

 

 

6,242

0.71

%

 

3,453,423

 

 

7,802

0.91

%

 

3,441,846

 

 

9,327

 

1.09

%

Noninterest-bearing demand deposits

 

1,044,009

 

 

852,384

 

 

820,689

 

Other liabilities

 

115,110

 

 

75,922

 

 

48,803

 

Stockholders’ equity

 

697,117

 

 

683,620

 

 

630,392

 

Total liabilities and
stockholders’ equity

$

5,397,864

 

$

5,065,349

 

$

4,941,730

 

Net interest income

$

38,287

$

40,603

$

41,113

 

Net yield on earning assets

3.13

%

3.54

%

3.66

%

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

$

609

$

116

$

481

 

 
(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

$

194

$

151

$

83

 

Commercial, financial, and agriculture

 

651

 

1,240

 

668

 

Installment loans to individuals

 

37

 

39

 

(6

)

Time deposits

 

155

 

155

 

196

 

$

1,037

$

1,585

$

941

 

 
(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%.
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited) ($ in 000s)
 
Six Months Ended
June 30, 2020 June 30, 2019
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2)

$

1,785,795

 

$

38,930

4.38

%

$

1,791,263

 

$

40,904

 

4.60

%

Commercial, financial, and agriculture (2)

 

1,791,510

 

 

38,141

4.28

%

 

1,710,281

 

 

42,503

 

5.01

%

Installment loans to individuals (2), (3)

 

57,217

 

 

1,715

6.03

%

 

56,383

 

 

1,728

 

6.18

%

Previously securitized loans (4) ***

 

267

*** ***

 

317

 

***
Total loans

 

3,634,522

 

 

79,053

4.37

%

 

3,557,927

 

 

85,452

 

4.84

%

Securities:
Taxable

 

853,882

 

 

11,589

2.73

%

 

731,976

 

 

11,420

 

3.15

%

Tax-exempt (5)

 

107,671

 

 

1,934

3.61

%

 

101,356

 

 

1,942

 

3.86

%

Total securities

 

961,553

 

 

13,523

2.83

%

 

833,332

 

 

13,362

 

3.23

%

Deposits in depository institutions

 

169,626

 

 

360

0.43

%

 

87,031

 

 

767

 

1.78

%

Total interest-earning assets

 

4,765,701

 

 

92,936

3.92

%

 

4,478,290

 

 

99,581

 

4.48

%

Cash and due from banks

 

75,132

 

 

64,583

 

Premises and equipment, net

 

78,042

 

 

78,671

 

Goodwill and intangible assets

 

119,886

 

 

122,114

 

Other assets

 

213,147

 

 

192,768

 

Less: Allowance for credit losses

 

(20,303

)

 

(15,617

)

Total assets

$

5,231,605

 

$

4,920,809

 

 
Liabilities:
Interest-bearing demand deposits

$

881,904

 

$

647

0.15

%

$

880,401

 

$

1,842

 

0.42

%

Savings deposits

 

1,021,608

 

 

1,063

0.21

%

 

963,804

 

 

2,302

 

0.48

%

Time deposits (2)

 

1,359,442

 

 

11,491

1.70

%

 

1,376,284

 

 

12,040

 

1.76

%

Short-term borrowings

 

232,900

 

 

743

0.64

%

 

218,527

 

 

1,915

 

1.77

%

Long-term debt

 

1,670

 

 

100

12.04

%

 

4,053

 

 

95

 

4.73

%

Total interest-bearing liabilities

 

3,497,524

 

 

14,044

0.81

%

 

3,443,069

 

 

18,194

 

1.07

%

Noninterest-bearing demand deposits

 

948,196

 

 

804,489

 

Other liabilities

 

95,516

 

 

52,070

 

Stockholders’ equity

 

690,369

 

 

621,181

 

Total liabilities and
stockholders’ equity

$

5,231,605

 

$

4,920,809

 

Net interest income

$

78,892

$

81,387

 

Net yield on earning assets

3.33

%

3.66

%

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

$

725

$

615

 

 
(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

$

345

$

115

 

Commercial, financial, and agriculture

 

1,891

 

858

 

Installment loans to individuals

 

76

 

(12

)

Time deposits

 

311

 

452

 

$

2,623

$

1,413

 

 
(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%.
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Non-GAAP Reconciliations
(Unaudited) ($ in 000s, except per share data)
 
Three Months Ended Six Months Ended
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 June 30, 2020 June 30, 2019
Net Interest Income/Margin
Net interest income (“GAAP”)

$

38,070

 

$

40,415

 

$

39,847

 

$

40,537

 

$

40,911

 

$

78,486

 

$

80,977

 

Taxable equivalent adjustment

 

217

 

 

188

 

 

189

 

 

192

 

 

202

 

 

406

 

 

410

 

Net interest income, fully taxable equivalent

$

38,287

 

$

40,603

 

$

40,036

 

$

40,729

 

$

41,113

 

$

78,892

 

$

81,387

 

 
Average interest earning assets

$

4,914,242

 

$

4,617,157

 

$

4,585,008

 

$

4,503,502

 

$

4,513,503

 

$

4,765,701

 

$

4,478,290

 

 
Net Interest Margin

 

3.13

%

 

3.54

%

 

3.46

%

 

3.59

%

 

3.66

%

 

3.33

%

 

3.66

%

Accretion related to fair value adjustments

 

-0.08

%

 

-0.14

%

 

-0.08

%

 

-0.11

%

 

-0.08

%

 

-0.11

%

 

-0.06

%

Net Interest Margin (excluding accretion)

 

3.05

%

 

3.40

%

 

3.38

%

 

3.48

%

 

3.58

%

 

3.22

%

 

3.60

%

 
Tangible Equity Ratio (period end)
Equity to assets (“GAAP”)

 

12.55

%

 

13.47

%

 

13.11

%

 

13.10

%

 

12.89

%

Effect of goodwill and other intangibles, net

 

-1.93

%

 

-2.09

%

 

-2.13

%

 

-2.17

%

 

-2.19

%

Tangible common equity to tangible assets

 

10.62

%

 

11.38

%

 

10.98

%

 

10.93

%

 

10.70

%

 
Return on Tangible Equity
Return on tangible equity (“GAAP”)

 

12.6

%

 

20.6

%

 

16.8

%

 

17.0

%

 

17.9

%

 

16.6

%

 

17.8

%

Impact of merger related expenses

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

 

0.3

%

 

0.0

%

 

0.2

%

Impact of sale of VISA shares

 

0.0

%

 

-9.7

%

 

0.0

%

 

0.0

%

 

0.0

%

 

-4.8

%

 

0.0

%

Return on tangible equity, excluding merger related expenses and sale of VISA shares

 

12.6

%

 

10.9

%

 

16.8

%

 

17.0

%

 

18.2

%

 

11.8

%

 

18.0

%

 
Return on Assets
Return on assets (“GAAP”)

 

1.35

%

 

2.29

%

 

1.80

%

 

1.81

%

 

1.84

%

 

1.81

%

 

1.80

%

Impact of merger related expenses

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.04

%

 

0.00

%

 

0.03

%

Impact of sale of VISA shares

 

0.00

%

 

-1.08

%

 

0.00

%

 

0.00

%

 

0.00

%

 

-0.52

%

 

0.00

%

Return on assets, excluding merger related expenses and sale of VISA shares

 

1.35

%

 

1.21

%

 

1.80

%

 

1.81

%

 

1.88

%

 

1.29

%

 

1.83

%

 

 

]]>
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Forbes Guide to Credit Cards – Forbes Advisor https://hsmcohio.com/forbes-guide-to-credit-cards-forbes-advisor/ https://hsmcohio.com/forbes-guide-to-credit-cards-forbes-advisor/#respond Mon, 26 Apr 2021 04:53:01 +0000 https://hsmcohio.com/?p=391 The credit card had a humble beginning. Diners’ Club introduced the first general-purpose credit card in 1950, followed eight years later by the first bank issued credit card. Americans have been using plastic credit cards since 1959 when American Express introduced plastic to replace its cardboard predecessor. Today, credit cards have become ubiquitous in the […]]]>

The credit card had a humble beginning. Diners’ Club introduced the first general-purpose credit card in 1950, followed eight years later by the first bank issued credit card. Americans have been using plastic credit cards since 1959 when American Express introduced plastic to replace its cardboard predecessor.

Today, credit cards have become ubiquitous in the United States. According to the Federal Reserve, Americans used their credit cards to pay a record 40.8 billion times in 2017, and those payments totaled $3.6 trillion. Statista reports more than a billion credit cards in the U.S. today and, according to the Federal Reserve, credit card debt now surpasses $1 trillion.

There are several reasons for the explosion of credit card use. One is the security and convenience of using a card instead of lugging around loads of cash. Another reason is the boom in online shopping. There’s also the number of banks offering compelling cash and travel rewards to their card users. Some credit card issuers offer a 0% introductory APR on purchases or balance transfers as a way to market their cards. And then there is a credit card’s ability to help consumers build a credit history and score that will help them later if they want to take out a mortgage, borrow for a car, or do anything else (like rent an apartment) that might require a credit check.

In this Forbes Advisor Guide to Credit Cards, we cover these and other topics you need to decide whether and how credit cards should be part of your financial life.

What Is a Credit Card?

Credit cards, which are a form of revolving credit, work differently than installment loans. With an installment loan, such as a car loan, a consumer borrows a fixed amount of money at a fixed or variable interest rate. A minimum monthly payment is set in advance, and it doesn’t change over the course of the loan.

With credit cards, it’s a different ball game. First, most credit cards come with a credit limit. A credit limit of $10,000, for example, enables a consumer to charge up to $10,000 on the card. Of course, there is nothing requiring the cardholder to use any or all of the available credit.

Second, the minimum payment on a credit card varies based on the outstanding balance. As the outstanding balance goes up, so does the minimum payment. Conversely, as the balance goes down, the minimum monthly payment also goes down.

Third, there’s no term on revolving debt. A car loan, for example, typically has a set term (e.g., 5 years). With a credit card, a consumer can continue to use the card so long as the balance doesn’t exceed the card’s credit limit.

The Types of Credit Cards

There are several different types of credit cards. These include cards for those with no credit or poor credit, business cards, and those looking for rewards. Here are the major types of credit cards available today.

Secured Credit Cards

In the world of credit cards, you’ll find there are two broad categories: secured and unsecured. Both report your payment history to credit reporting bureaus. Most credit cards you see advertised are unsecured, meaning they don’t require a refundable deposit to use them. Secured credit cards, on the other hand, require a security deposit to open the account.

Secured cards will likely have the word “secured” attached to its name—for example, there’s the  Discover it® Secured Credit Card card. If approved for the card, you’d deposit $200 to open a $200 line of credit with Discover. After eight months, your account, along with your other credit accounts, are reviewed monthly to evaluate your credit management. At that point, assuming you have paid off your balance every month and managed your other accounts well, Discover may refund your deposit and switch you to an unsecured card.

Unsecured Credit Cards

Unsecured credit cards are what most people think of as traditional cards. What follows are various types of unsecured credit cards.

Student Credit Cards

A student credit card is designed for college students with limited or no credit. Student cards usually come with low to no annual fees and an educational component in the form of rewards. Some banks and credit unions will offer statement credits for maintaining a certain grade point average, for example. Other card features include cash back or rewards points. The credit limit on student cards is often low given the applicant’s limited income and credit history.

Business Credit Cards

There are two types of business credit cards: small business and corporate. Card issuers will have different qualifications for each card. For example, what one bank considers a small business, another might not.

A small business credit card operates like a personal credit card and it’s commonly used to establish credit for a young business. It’s similar to a personal credit card in that the small business may not have enough credit history to get a corporate card and so the business owner applies for credit through their own name.

Businesses that have more scale and a credit rating from one of the business credit rating agencies meet the requirements for a corporate credit card. Corporate credit cards give companies with millions in revenue the flexibility of authorizing multiple users and earning business related rewards like air mileage.

These cards aren’t hard to come by so you can shop around to find one that meets your business needs.

Reward Credit Cards

Credit cards offer a variety of valuable rewards. From cash back to free travel, rewards credit cards seek to build loyalty with card holders by rewarding them when they use the card.

Here are the major types of reward credit cards:

Cash Back Credit Cards

A cash back credit card offers discounts on purchases by giving cardholders cash in the form of a check, direct deposit or a statement credit. Cash back rewards typically range between 1% to 6% on purchases. For cards that pay the same rewards percentage on all purchases, the rewards range is from 1% to 2% in most cases. As the rewards rate rises above 2%, the rewards are limited to specific categories of purchases.

When choosing a cash back credit card, look for one that matches your spending habits. For example, if you spend a lot on groceries, you could choose a card that gives you a higher cash back rate at grocery stores. If you value simplicity, however, you could choose a card that offers 2% in unlimited cash back on all purchases.

Another feature to consider is monthly and annual fees. If your annual fee is equal to or bigger than your one-year cash back earning potential, it may not be a good fit for you unless you’re looking for the cash back to cover that fee. Likewise, if your interest rate is high and you will likely carry a balance, then you may not even get a chance to enjoy cash back rewards, since those rewards are likely to be more than offset by the interest you pay.

Look at when you can redeem the cash back, as well. Some cards give cash back after you’ve earned a number of points at certain merchants, others give cash back after a certain number of days or months, and some give you instant cash back. Read the redemption process for earning cash back to determine if its worth your time and energy.

Travel Reward Credit Cards

Credit cards are tools that can be aligned with your lifestyle. Travelers looking to earn mileage or discounts on hotels and travel packages have travel reward credit cards as an option. There are bank cards that are great for general travel and then there are branded cards that are great for flights on specific airlines or stays at specific hotel chains.

You could get a travel rewards card through a financial institution such as your bank. Bank of America® Travel Rewards credit card offers an unlimited 1.5 reward points for every dollar spent, and you also Earn 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening – that can be a $250 statement credit toward travel purchases.

Some travel reward credit cards double as branded cards. Airlines offer credit cards that help you accumulate frequent flier points, which you can redeem for flights, free checked luggage, preferred boarding or discounts with their partners like other airlines. American Airlines partnered with Citibank to produce the Citi® / AAdvantage® Platinum Select® World Elite Mastercard®.

Hotel reward cards carry similar benefits. You would use a hotel card to earn points towards discounted rates, room upgrades, extended checkout or a free stay. The IHG® Rewards Club Premier Credit Card* card gives free stays to cardholders on their card’s renewal anniversary.

Maybe hotel and flight discounts don’t excite you? Car rental companies like Avis offer credit cards, too.

Once again, pay attention to the fine print of how you can earn points, as well as how you will redeem those points. Some travel rewards programs may require you to cover your own taxes when redeeming your travel points—meaning, for example, that a free flight might not be really free.

Branded Credit Cards

Stores and other merchants partner with card issuers to create cards offering rewards or cash back. The Amazon Prime Rewards Visa Signature, issued by Chase, gives Amazon Prime members 5% cash back on purchases made on the site and at Whole Foods stores.

Charge Cards

Unlike credit cards, which allow you to carry a balance into the following month for whatever interest charge you qualify for, charge card issuers require that you pay your balance off every month. If you choose not to pay the balance off, you will incur a fee.

Another difference is the credit limit. Charge cards do not have a pre-set spending limit; however, there are some retail charge cards that do. No pre-set spending limit doesn’t mean you access to endless credit. The bank can limit your credit to your regular usage of the card or your payment history.

Though charge cards are no longer as commonplace as credit cards, some financial institutions still offer them. They are helpful tools for people who prefer to not have long-term debt.

These cards may come with rewards programs, too. With American Express charge cards, for example, reward points could be one to five times your purchase amount. The only downside is these cards tend to come with high annual fees.

Subprime Credit Cards

Subprime credit cards are designed for borrowers who have poor credit scores.  Subprime cards often come with exorbitant fees on top of high interest rates. There are some, however, such as the Credit One Bank Visa, that keep their fees and interest rates in line with standard rates. If you have poor credit, your goal should be to rebuild your score so you can qualify for lower interest rates and save money in the long run.

0% Introductory APR on Purchases and  Balance Transfers

Some credit cards offer an introductory 0% APR. The 0% annual percentage rate is an introductory feature. Once you reach the end of that promotional period, the rate goes up to a standard credit card interest rate. Credit card companies may extend their 0% APR offers to purchases, balance transfers or both.

It’s important to understand the difference between 0% on purchases and 0% on balance transfers. With purchases, consumers pay no interest on their balance during the introductory period. Once the introductory period ends, the interest rates goes to the standard purchase rate based on the cardholder’s individual’ creditworthiness.

Balance transfers work differently. Knowing that consumers want to avoid interest charges on their revolving debt, some issuers offer balance transfer promotions to obtain new customers. Once the customer is approved, she can transfer her balance from an existing credit card to her new credit card with a 0% APR. While she’ll benefit from the 0% APR during the introductory period, most balance transfer cards charge a transfer fee of 3% to 5% of the amount transferred. A few cards, like the Chase Slate card, waive the balance transfer fee for those who initiate the transfer within a set period of time.

As previously suggested, shop around, compare features and go with a card that benefits you the most.

Prepaid Debit Cards

Prepaid debit cards are not credit cards and they don‘t help you build your credit history. But if you do not have a bank account or if you want more control over your spending you might choose to use one of these cards for convenience. That’s because prepaid cards generally can be used anywhere that accepts credit cards.

Prepaid cards operate similarly to checking account debit cards. But since a prepaid card doesn’t have a checking account to draw from, you must first load money onto it before you can use it. Prepaid debit cards are reloadable, so you can continue to use the same card again and again.

There are a variety of ways to load money onto a prepaid care. For example, they generally accept direct deposit of paychecks, tax refunds, and government assistance payments. Many cards offer account access online and through a smartphone app. They also offer text alerts for low balances or other account changes. Prepaid cards often come with extensive fees, so one must understand the card’s fees before selecting a prepaid card.

Credit Card Networks

American Express, Discover, MasterCard and Visa are the largest credit card networks in the U.S. The most widely used network is Visa. According to Statista, an online market research portal, Visa had 337 million credit cards in circulation in the U.S. in the fourth quarter of 2018. Visa is accepted at over 46 million merchant locations, used by nearly 16,000 financial institutions and in over 200 countries, MasterCard had 231 million credit cards in U.S. circulation at the end of 2018 and AMEX had 54 million.

The Pros and Cons of Using Credit Cards

The Pros:

  • Protection – Federal consumer protection laws provide that your personal liability for credit card fraud is a maximum of $50 if you report that your card is lost or stolen within two days of realizing it.  (Many credit card companies, however, offer $0 liability so long as you timely report the loss.) If you don’t report a card theft or loss within two days, your liability increases to $500. If you still have physical possession of your card and there are fraudulent charges made on it, you have $0 liability so long as you report the fraud within 60 days of the time your card statement showing the fraud is sent to you.
  • Convenience – Credit cards are easy to use because they are accepted by most merchants, they are handy for moments when you don’t have cash and if a card is lost or stolen, your potential liability is limited.
  • Rewards – Credit card issuers like to reward customers for their business or loyalty with discounts and prizes.

The Cons:

  • Easy to Accumulate More Debt – Spending past what you can afford and missing your payments equals more debt than you can handle and a poor credit score.
  • Convenience – The convenience of these cards encourages people to spend more and use it more frequently than if they only had cash or a debit card. A 2001 study by Drazen Prelec and Duncan Simester on willingness-to-pay illustrates that participants were more willing to pay for an item when they were told to use credit instead of cash. It’s good business for banks, but it can be bad for your net worth..
  • High Interest Rates and Fees – These can get you into more financial trouble when you fall on hard times.

Credit Cards and Your Credit Score

We can’t give you a guide on credit cards without discussing credit scores. Credit card issuers use credit scores, which are based on your ability to manage credit as reported in your credit bureau file, to evaluate your creditworthiness.

Between VantageScore, FICO scores and specialty credit scores for renting or employment, you have many different credit scores. The one most widely used by credit card companies is a FICO score, which ranges between 300 and 850. The lower the score, the more of a credit risk you seem to creditors. The higher the score, the more creditworthy you seem to creditors.

Your FICO score is based on five factors:

  • your payment history (35%)
  • the share of your credit lines you are using (30%)
  • the length of your credit history (15%)
  • the diversity of your credit (10%)
  • new credit accounts you have opened in the past 12 months

Once you’ve applied for a credit card, the issuer performs a hard pull on your credit report to evaluate your creditworthiness. They might look at how much of your available credit you are using, how long you’ve held credit and if you are good at paying off your balance (or at least keeping it low). They also might check how many credit accounts you’ve recently opened and what type of credit you have received. What a credit card company looks at depends on that company’s approval process.

The credit pull helps credit card companies decide how high an APR you are eligible for. High credit scorers (700 and above) could qualify for a lower interest rate compared to low scorers. Credit card users who prefer to carry a balance instead of paying their balance off every month should aim to get the lowest interest rate. That way, they’ll pay less interest.

Use your credit cards with your credit score in mind and allow it to work for you, not against you.

Credit Card Sign-up Bonuses

Banks, especially major ones, offer bonuses for switching to their services. Common sign-up bonuses include cash bonuses of up to  hundreds of dollars, if you spend a certain within the first several  months of opening a card. These case rewards can come as statement credits on your bill, or even checks. Credit cards that offer reward points also offer sign-up bonuses equal to thousands of points that can be redeemed for merchandise or trips.

Pay attention to the fine print. Some banks will use the bonus as a token of their appreciation for your business while others will make you jump through hoops. You could find a bank who will give you cash for simply opening a new account with them. Or, you might choose a credit card where you would have to spend a few hundred or even a few thousand dollars to qualify for the sign-up reward. The fine print will tell you what you have to do to qualify for the sign up bonus. It will also tell you whether you would qualify to participate in getting the bonus. Some issuers will clearly state in the section that you are not eligible for the bonus if you’ve already received one from them within the past one or two years.

There are a couple of other things to watch out for with sign up bonuses, including hidden fees that could diminish your bonus. Finally, be sure to compare other sign-up bonuses currently offered by the same bank for other cards (they may be even higher) and by other banks.

Credit Card Fees

Types of credit card fees:

  • Late payment fee: Credit card issuers charge you a fee for any payments deemed late.
  • Balance transfer fee: When you transfer your balance from one card to another, you may incur a fee on the card receiving the balance transfer.
  • Cash advance fee: You may find yourself in a situation where you need cash  and you don’t have your debit card on you. You can withdraw cash from your credit card for a percentage fee.
  • Foreign transaction fee: When you use your credit card outside of its country of origin, the issuer will charge you a fee to cover the costs associated with using a foreign bank or foreign currency. Some cards, particularly those that are travel-related, waive this fee.
  • Over-the-credit limit fee: This is much like the overdraft fee you see with checking accounts except it’s a charge the issuer adds to your bill for covering a transaction that went over the card’s credit limit.
  • Annual fee: This is an account maintenance fee that you would pay annually. Some accounts make you pay monthly. Many cards come without an annual fee.
  • Returned payment fee: When your credit card payment fails to go through because of insufficient funds, the card issuer will charge a fee.
  • Convenience fee: Some merchants will charge you a fee for using a credit card instead of cash.

Managing Credit Card Debt

People manage their credit card balances in two main ways and be described as either revolvers or transactors.

Revolvers leave a balance on their card and repay what they borrowed over time. They may make minimum payments, which carries interest and a bit of the principal, or chip away at the balance with a larger than minimum payment. Timely minimum payments keep you in good standing, but they also lengthen your time repaying the debt and cause you to pay more in interest. Because of this, we recommend revolvers aim for credit cards with low interest rates to save money.

Transactors are people who pay their balance off at the end of every month. These people might not worry about interest rates much since they avoid interest charges by paying off their balance in full each month. Instead, they should generally opt for credit cards that offer the highest rewards.

An interest rate, also known as the annual percentage rate (APR), is the yearly cost of the credit you are borrowing from a financial institution. A financial institution could be a traditional commercial bank, credit union or an investment bank with banking services. The APR is determined by your creditworthiness (i.e. credit score) and also by what you do with the credit card.

Some credit cards charge different APRs for different types of transactions. For example, the APR on purchases can be different than the APR on cash advance. A penalty APR can be even higher and apply when a cardholder violates the terms of the credit card agreement (e.g., missing a payment or going over the credit limit). If you slip into a penalty APR, you could go, for example, from paying an 18% APR on an outstanding balance to a 29% APR.

Grace Period

To avoid interest charges, you’ll need to be a transactor and pay your debt off every month by the due date. The time between the end of your billing cycle and due date is known as the grace period. Grace periods are at least 21 days and last up to the payment due date. By paying during the grace period, you avoid interest and only pay for the purchases.

When you fail to pay during that period, you incur interest and usually, a late payment fee. If you make a partial payment or a minimum payment instead of paying off your bill in full, you will also incur interest. What’s more, you’ll end up waiving your grace period for the next billing cycle until the bill is completely paid.

Balance Calculation Methods

Credit card companies have a few different ways of calculating interest. They can use either a daily periodic rate or a monthly periodic rate. The daily periodic rate takes the APR and divides it by 365 and then multiplies that number by the number of days in the billing cycle. Next, banks take that figure and multiply it by the outstanding balance. The monthly periodic rate is similar except it is the APR divided by 12 months.

Differences in  calculation methods don’t stop at periodic rates. The rates are applied to the balance in various ways such as the adjusted balance, the average daily balance excluding new purchases, the two-cycle average daily balance including new purchases and the two-cycle average daily balance excluding new purchases. The least expensive are the adjusted balance and average daily balance (ADB) excluding new purchases. The most expensive are two-cycle ADB including new purchases  and the two-cycle ADB excluding purchases. 

Adjusted Balance

Credit card issuers charge an interest (1/12 of the APR) on the remaining unpaid balance after payment is due.

Average Daily Balance

For the average daily balance, credit card issuers charge interest from the date of the purchase. If payment hasn’t been made by the due date then interest will accrue. The bank decides whether new purchases will be included or excluded from each billing cycle.

Here’s an example calculation

Daily balance with new purchases = Beginning balance – (payments + credits) + (purchases + fees)

ADB = Sum of Daily Balances / Number of Days in the Billing Cycle

Two-Cycle ADB

This method has fallen out-of-style, but it still exists. The two-cycle ADB adds a current billing cycle with the billing cycle before it to calculate your interest. According to the Consumer Finance Protection Bureau, both the current and previous balances are calculated the same. The balances (including or excluding new purchases, and subtracting payments along with credits) of each day are added together and then divided by the number of days in the billing cycle. As you would imagine, this balance calculation method is expensive for the cardholder..

Making the Minimum Payment

When you make the minimum payment on a credit card bill, you are paying a percentage of the principal and the interest that accrued for that billing cycle. Usually, the minimum payment is a percentage of your balance, plus any interest and fees.

Minimum Payment = % of the balance + any interest and any fees 

In your card member agreement you’ll find information about how you are charged an interest rate, what that interest rate is and what percentage of your balance will be your minimum payment. For example, my credit card agreement states that my minimum payment will be 1% of my balance plus the interest that accrues over my 26-day billing cycle. The interest doesn’t get applied until the end of the billing cycle.

Paying the minimum means you plan to carry a balance into the next billing cycle on your credit card. If you don’t pay the balance off in full by the next bill then your minimum payment will increase because you will have accrued more interest.

Making the minimum payment is one option in paying down your debt, but it takes longer and costs you more. The longer you wait to pay off a balance, the more you pay in interest (the fee the credit card issuer charges you for borrowing its money). To some cardholders, the minimum seems like a good idea since you’ll have more cash in your pocket, but there’s better ways to pay off your balance. It’s important to note that you should always—at least—pay the minimum to keep your payment history in good standing.

Low Interest Rate vs. Rewards

If you are searching for rewards cards, weigh the cost of the card against the rewards. As suggested before, revolvers should aim for cards with low interest rates. The rewards (points, miles, cashback) that are part of high interest cards may not outweigh the costs in fees and interest.

Credit cards should be seen as tools and not as goals. Your goal should be to be as financially healthy as you possibly can. You can use credit cards to do that by choosing ones that will maintain or improve your credit file and score, enhance activities you already do such as travel, protect your cash and and are convenient.

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City Holding Company Announces Third Quarter Results https://hsmcohio.com/city-holding-company-announces-third-quarter-results/ https://hsmcohio.com/city-holding-company-announces-third-quarter-results/#respond Mon, 26 Apr 2021 04:40:35 +0000 https://hsmcohio.com/?p=367 CHARLESTON, W. Va.–(BUSINESS WIRE)–City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $5.5 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $20.1 million and diluted earnings of $1.25 per share for the quarter ended September 30, 2020. For the third quarter of 2020, the Company achieved a return on […]]]>

CHARLESTON, W. Va.–()–City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $5.5 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $20.1 million and diluted earnings of $1.25 per share for the quarter ended September 30, 2020. For the third quarter of 2020, the Company achieved a return on assets of 1.46% and a return on tangible equity of 13.8%.

Charles R. (“Skip”) Hageboeck, the President and Chief Executive Officer of City Holding Company, commented: “Like all of the world, City Holding Company and City National Bank have experienced repercussions from the economic slow-down that has accompanied COVID-19. As an essential business, our company has focused on continuing to provide our customers safe access to banking products and services consistent with our reputation for exceptional customer service. In 2020, City was recognized for the third consecutive year by the JD Power organization as the “Highest in Customer Satisfaction” in the North Central US. We have also been highly focused on protecting the health of our employees and customers. Branches were open by appointment only during the initial months of the pandemic, but by the end of the third quarter of 2020, all 94 of our locations were fully open to customers. We are pleased that while many businesses in our nation have had to implement layoffs, we have been fortunate not to have to consider such painful changes, and City’s family of dedicated employees have continued to demonstrate their exceptional commitment to each other, our customers, our communities, and to our company. I thank all of them for their brave and hard work during a very stressful time.”

“The COVID crisis caused the Federal Reserve to lower short-term interest rates to nearly zero during the second quarter of 2020. As a result, deposit rates are very low across all financial institutions. And yet, deposits at banks have ballooned this year. At City, deposits are up nearly $350 million since December 31, 2019 – or about 8%. While the economy continued to recover in the third quarter of 2020, the drop-off in the second quarter of 2020 was extraordinarily steep and thus loan demand outside of the Government sponsored Paycheck Protection Program (“PPP”) remains very weak. Despite these lingering effects of COVID-19, City was again able to produce strong results during the third quarter of 2020. Net interest income for the third quarter of 2020 was about flat with the linked quarter. Provision expense was low. Fee income was solid and expenses continue to be well managed. These successes are attributable to the hard working team of City professionals, and I thank them for their dedication and effort.”

“Asset quality seems to be the top concern for analysts who follow banking organizations. In our opinion, City’s asset quality continues to remain solid. As compared to pre-COVID asset quality levels at December 31, 2019, nonperforming assets have improved; past-due loans have improved and troubled-debt restructured loans have improved! Further, the amount of loans in deferment status dropped dramatically during the quarter ended September 30, 2020. As of September 30, 2020, approximately $180 million of commercial loans have been granted deferrals as compared to approximately $430 million as of June 30, 2020. Nearly $160 million of the commercial loan deferments were for hotel and lodging related loans at September 30, 2020. While reduced business and personal travel have lowered occupancy rates for our hotel and lodging loan customers, occupancy rates continued to improve during the third quarter of 2020. As of September 30, 2020, approximately $15 million of mortgage loans have been granted deferrals as compared to approximately $125 million at June 30, 2020.”

Net Interest Income

The Company’s net interest income decreased slightly from $38.1 million during the second quarter of 2020 to $38.0 million during the third quarter of 2020. The Company’s tax equivalent net interest income remained level at $38.3 million for both the second and third quarters of 2020. Lower loan yields (21 basis points) decreased net interest income by $1.5 million and a decrease in accretion fair value adjustments lowered net interest income by $0.5 million. These decreases were essentially offset by an increase in investment income due to higher yields and an increase in balances and a decrease in rates paid on deposits (13 basis points) which increased net interest income by $0.9 million and $0.8 million, respectively. The Company’s reported net interest margin decreased from 3.13% for the second quarter of 2020 to 3.02% for the third quarter of 2020. Excluding the favorable impact of the accretion from fair value adjustments, the net interest margin would have been 2.97% for the quarter ended September 30, 2020 and 3.05% for the quarter ended June 30, 2020.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned decreased from 0.48% at June 30, 2020 to 0.43% at September 30, 2020. Total nonperforming assets decreased from $17.6 million at June 30, 2020 to $15.7 million at September 30, 2020. Total past due loans increased marginally from $7.1 million, or 0.19% of total loans outstanding, at June 30, 2020 to $7.4 million, or 0.20% of total loans outstanding, at September 30, 2020.

As a result of the Company’s quarterly analysis of the adequacy of the allowance for credit losses (“ACL”), the Company recorded a provision for credit losses of $1.0 million in the third quarter of 2020, compared to a provision for loan losses of $0.3 million for the comparable period in 2019 and a provision for credit losses of $1.25 million for the second quarter of 2020. The provision for credit losses recognized in the third quarter of 2020 primarily relates to changes in outstanding balances in the Company’s loan portfolio and their associated loss rates and downgrades of certain hotel/motel credits during the quarter based on current market conditions which increased the Company’s ACL by $2.0 million and $1.2 million. Partially offsetting these increases in the ACL was a decrease in the ACL due to the upgrade of a specific credit that was downgraded in 2017, but has since seen improved financial performance. This upgrade released $2.2 million of ACL reserves.

Non-interest Income

Non-interest income was $17.0 million for the third quarter of 2020 as compared to $16.7 million for the third quarter of 2019. During the third quarter of 2020, the Company reported $0.5 million of unrealized fair value gains on the Company’s equity securities compared to $0.3 million of unrealized fair value losses on the Company’s equity securities in the third quarter of 2019. Exclusive of these gains, non-interest income decreased from $17.0 million for the third quarter of 2019 to $16.5 million for the third quarter of 2020. This decrease was largely attributable to a decrease of $1.9 million, or 23.1%, in service charges as average deposit balances have increased during the COVID-19 pandemic. This decrease was partially offset by increases in our bankcard revenues ($0.6 million), other income due to fees from loan interest rate swap originations ($0.5 million), and bank owned life insurance revenues due to death benefit proceeds ($0.3 million).

Non-interest Expenses

Non-interest expenses increased $0.3 million (1.1%), from $28.4 million in the third quarter of 2019 to $28.7 million in the third quarter of 2020. This increase was primarily due to an increase in equipment and software related expenses of $0.4 million, FDIC insurance expense of $0.4 million, and other expenses of $0.2 million. These increases were partially offset by decreases in advertising expenses ($0.4 million) and occupancy related expenses ($0.3 million).

Balance Sheet Trends

Loans increased $47.9 million (1.3%) from December 31, 2019 to $3.66 billion at September 30, 2020. As a result of the Company’s participation in the PPP loans administered by the SBA, commercial and industrial loans increased $88.5 million. Excluding PPP loans, total loans decreased $40.6 million, (1.1%), from December 31, 2019 to $3.58 billion at September 30, 2020. Residential real estate loans decreased $19.1 million (1.2%), commercial and industrial loans decreased $12.5 million (4.1%) (excluding PPP loans), home equity loans decreased $8.8 million (5.9%) and consumer loans decreased $3.7 million (6.9%). These decreases were partially offset by an increase in commercial real estate loans of $5.0 million (0.3%). Decreases in loan outstandings are reflective of the low-interest rate environment driving residential mortgage originations toward fixed rate loans and a general lack of borrowing for commercial loans.

Total average depository balances increased $133.4 million, or 3.1%, from the quarter ended June 30, 2020 to the quarter ended September 30, 2020. Average noninterest-bearing demand deposit balances increased $70.8 million, average savings deposit balances increased $56.5 million, and average interest-bearing demand deposit balances increased $37.3 million. These increases were partially offset by a decrease in time deposit balances of $31.2 million. Since December 31, 2019, depository balances have increased $344.2 million (8.4%) due to the infusion of government transfer payments for unemployment insurance, PPP loans and stimulus checks. Additionally, due to very low interest rates across a wide array of investment alternatives, it appears that customers are stockpiling cash in banking institutions.

Income Tax Expense

The Company’s effective income tax rate for the third quarter of 2020 was 20.2% compared to 21.3% for the year ended December 31, 2019, and 21.7% for the quarter ended September 30, 2019.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 82.9% and the loan to asset ratio was 66.5% at September 30, 2020. The Company maintained investment securities totaling 21.5% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 56.6% of assets at September 30, 2020. Time deposits fund 23.6% of assets at September 30, 2020, but very few of these deposits are in accounts that have balances of more than $250,000, reflecting the core retail orientation of the Company.

The Company continues to be strongly capitalized. The Company’s tangible equity ratio decreased from 11.0% at December 31, 2019 to 10.6% at September 30, 2020. At September 30, 2020, City National Bank’s Leverage Ratio was 9.32%, its Common Equity Tier I ratio was 14.46%, its Tier I Capital ratio was 14.46%, and its Total Risk-Based Capital ratio was 15.04%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On September 30, 2020, the Board of Directors of the Company approved a quarterly cash dividend of $0.57 per share payable October 30, 2020, to shareholders of record as of October 15, 2020. During the quarter ended September 30, 2020, the Company repurchased 231,000 common shares at a weighted average price of $59.49 as part of a one million share repurchase plan authorized by the Board of Directors in February 2019. As of September 30, 2020, the Company could repurchase approximately 247,000 additional shares under the plan.

City Holding Company is the parent company of City National Bank of West Virginia. City National Bank operates 94 branches across West Virginia, Kentucky, Virginia, and Ohio. The Company recently commenced construction of a new branch in Spring Mills, WV. Located in Berkeley County, the branch will serve one of West Virginia’s fastest growing markets in the second-most populous of West Virginia’s 55 counties.

Forward-Looking Information

  • This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express only management’s beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the Company’s actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, especially in the communities and markets in which we conduct our business; (2) the uncertainties on the Company’s business, results of operations and financial condition, caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its continued influence on financial markets, the effectiveness of the Company’s work from home arrangements and staffing levels in operational facilities, the impact of market participants on which the Company relies and actions taken by governmental authorities and other third parties in response to the pandemic; (3) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for loan losses may not be sufficient to absorb actual losses in our loan portfolio, and risk from concentrations in our loan portfolio; (4) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (5) changes in the interest rate environment; (6) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (7) changes in technology and increased competition, including competition from non-bank financial institutions; (8) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (9) difficulty growing loan and deposit balances; (10) our ability to effectively execute our business plan, including with respect to future acquisitions; (11) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries; (12) deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions; (13) regulatory enforcement actions and adverse legal actions; (14) difficulty attracting and retaining key employees; (15) other economic, competitive, technological, operational, governmental, regulatory, and market factors affecting our operations. Forward-looking statements made herein reflect management’s expectations as of the date such statements are made. Such information is provided to assist stockholders and potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. Further, the Company is required to evaluate subsequent events through the filing of its September 30, 2020 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary September 30, 2020 results and will adjust the amounts if necessary.
 
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 

Three Months Ended

 

 

 

Nine Months Ended

September 30, 2020

 

June 30, 2020

 

March 31, 2020

 

December 31, 2019

 

September 30, 2019

 

 

 

September 30, 2020

 

September 30, 2019

 
Earnings
Net Interest Income (fully taxable equivalent)

$

38,278

 

$

38,287

 

$

40,603

 

$

40,036

 

$

40,729

 

$

117,168

 

$

122,118

 

Net Income available to common shareholders

 

20,126

 

 

18,251

 

 

29,000

 

 

22,611

 

 

22,371

 

 

67,374

 

 

66,741

 

 
Per Share Data
Earnings per share available to common shareholders:
Basic

$

1.25

 

$

1.12

 

$

1.79

 

$

1.38

 

$

1.36

 

$

4.15

 

$

4.05

 

Diluted

 

1.25

 

 

1.12

 

 

1.78

 

 

1.38

 

 

1.36

 

 

4.15

 

 

4.04

 

Weighted average number of shares (in thousands):
Basic

 

15,950

 

 

16,081

 

 

16,080

 

 

16,207

 

 

16,271

 

 

16,065

 

 

16,350

 

Diluted

 

15,970

 

 

16,097

 

 

16,101

 

 

16,230

 

 

16,289

 

 

16,084

 

 

16,368

 

Period-end number of shares (in thousands)

 

15,848

 

 

16,077

 

 

16,140

 

 

16,303

 

 

16,302

 

 

15,848

 

 

16,302

 

Cash dividends declared

$

0.57

 

$

0.57

 

$

0.57

 

$

0.57

 

$

0.57

 

$

1.71

 

$

1.63

 

Book value per share (period-end)

$

43.62

 

$

43.15

 

$

42.45

 

$

40.36

 

$

39.85

 

$

43.62

 

$

39.85

 

Tangible book value per share (period-end)

 

36.11

 

 

35.72

 

 

35.03

 

 

32.98

 

 

32.44

 

 

36.11

 

 

32.44

 

Market data:
High closing price

$

67.98

 

$

71.19

 

$

82.40

 

$

82.72

 

$

78.30

 

$

82.40

 

$

82.56

 

Low closing price

 

55.37

 

 

55.18

 

 

57.11

 

 

74.33

 

 

72.35

 

 

55.18

 

 

67.58

 

Period-end closing price

 

57.61

 

 

65.17

 

 

66.53

 

 

81.95

 

 

76.25

 

 

57.61

 

 

76.25

 

Average daily volume (in thousands)

 

67

 

 

89

 

 

69

 

 

54

 

 

62

 

 

75

 

 

56

 

Treasury share activity:
Treasury shares repurchased (in thousands)

 

231

 

 

79

 

 

182

 

 

 

 

99

 

 

492

 

 

261

 

Average treasury share repurchase price

$

59.49

 

$

61.75

 

$

71.31

 

$

 

$

74.17

 

$

64.23

 

$

74.54

 

 
Key Ratios (percent)
Return on average assets

 

1.46

%

 

1.35

%

 

2.29

%

 

1.80

%

 

1.81

%

 

1.68

%

 

1.81

%

Return on average tangible equity

 

13.8

%

 

12.6

%

 

20.6

%

 

16.8

%

 

17.0

%

 

15.6

%

 

17.5

%

Yield on interest earning assets

 

3.43

%

 

3.64

%

 

4.22

%

 

4.22

%

 

4.42

%

 

3.75

%

 

4.46

%

Cost of interest bearing liabilities

 

0.58

%

 

0.71

%

 

0.91

%

 

1.00

%

 

1.10

%

 

0.73

%

 

1.08

%

Net Interest Margin

 

3.02

%

 

3.13

%

 

3.54

%

 

3.46

%

 

3.59

%

 

3.22

%

 

3.64

%

Non-interest income as a percent of total revenue

 

30.3

%

 

27.4

%

 

30.6

%

 

31.2

%

 

29.2

%

 

35.8

%

 

29.3

%

Efficiency Ratio

 

51.6

%

 

53.3

%

 

49.7

%

 

50.0

%

 

48.2

%

 

51.5

%

 

50.0

%

Price/Earnings Ratio (a)

 

11.53

 

 

14.50

 

 

17.63

 

 

14.82

 

 

13.98

 

 

10.40

 

 

14.13

 

 
Capital (period-end)
Average Shareholders’ Equity to Average Assets

 

12.71

%

 

12.91

%

 

13.50

%

 

13.12

%

 

13.12

%

Tangible equity to tangible assets

 

10.61

%

 

10.62

%

 

11.38

%

 

10.98

%

 

10.93

%

Consolidated City Holding Company risk based capital ratios (b):
CET I

 

15.93

%

 

16.10

%

 

16.02

%

 

16.05

%

 

15.62

%

Tier I

 

15.93

%

 

16.10

%

 

16.02

%

 

16.05

%

 

15.74

%

Total

 

16.50

%

 

16.69

%

 

16.46

%

 

16.40

%

 

16.14

%

Leverage

 

10.19

%

 

10.45

%

 

11.10

%

 

10.90

%

 

10.87

%

City National Bank risk based capital ratios (b):
CET I

 

14.46

%

 

14.55

%

 

14.32

%

 

13.92

%

 

14.00

%

Tier I

 

14.46

%

 

14.55

%

 

14.32

%

 

13.92

%

 

14.00

%

Total

 

15.04

%

 

15.15

%

 

14.82

%

 

14.28

%

 

14.40

%

Leverage

 

9.32

%

 

9.29

%

 

9.98

%

 

9.51

%

 

9.72

%

 
Other (period-end)
Branches

 

94

 

 

94

 

 

95

 

 

95

 

 

95

 

FTE

 

921

 

 

913

 

 

921

 

 

918

 

 

916

 

 
Assets per FTE (in thousands)

$

5,984

 

$

6,058

 

$

5,525

 

$

5,467

 

$

5,412

 

Deposits per FTE (in thousands)

 

4,799

 

 

4,834

 

 

4,400

 

 

4,440

 

 

4,399

 

 

(a) The price/earnings ratio is computed based on annualized quarterly earnings (excludes gain for sale of VISA shares, net of taxes).

(b) September 30, 2020 risk-based capital ratios are estimated.

 
 
CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited) ($ in 000s, except per share data)
 

Three Months Ended

 

 

 

Nine Months Ended

September 30, 2020

 

June 30, 2020

 

March 31, 2020

 

December 31, 2019

 

September 30, 2019

 

 

 

September 30, 2020

 

September 30, 2019

 
Interest Income
Interest and fees on loans

$

35,761

$

37,718

 

$

41,335

 

$

41,615

 

$

42,944

 

$

114,813

 

$

128,397

 

Interest on investment securities:
Taxable

 

6,266

 

5,718

 

 

5,871

 

 

5,924

 

 

6,044

 

 

17,855

 

 

17,465

 

Tax-exempt

 

1,132

 

821

 

 

707

 

 

711

 

 

722

 

 

2,659

 

 

2,257

 

Interest on deposits in depository institutions

 

72

 

55

 

 

304

 

 

298

 

 

271

 

 

432

 

 

1,034

 

Total Interest Income

 

43,231

 

44,312

 

 

48,217

 

 

48,548

 

 

49,981

 

 

135,759

 

 

149,153

 

 
Interest Expense
Interest on deposits

 

5,123

 

5,963

 

 

7,238

 

 

7,897

 

 

8,585

 

 

18,324

 

 

24,768

 

Interest on short-term borrowings

 

131

 

279

 

 

464

 

 

762

 

 

814

 

 

873

 

 

2,729

 

Interest on long-term debt

 

 

 

 

100

 

 

42

 

 

45

 

 

100

 

 

140

 

Total Interest Expense

 

5,254

 

6,242

 

 

7,802

 

 

8,701

 

 

9,444

 

 

19,297

 

 

27,637

 

Net Interest Income

 

37,977

 

38,070

 

 

40,415

 

 

39,847

 

 

40,537

 

 

116,462

 

 

121,516

 

Provision for (recovery of) credit losses

 

1,026

 

1,250

 

 

7,972

 

 

(75

)

 

274

 

 

10,248

 

 

(1,175

)

Net Interest Income After Provision for (Recovery of) Credit Losses

 

36,951

 

36,820

 

 

32,443

 

 

39,922

 

 

40,263

 

 

106,214

 

 

122,691

 

 
Non-Interest Income
Net (losses) gains on sale of investment securities

 

 

(6

)

 

63

 

 

 

 

(40

)

 

56

 

 

69

 

Unrealized gains (losses) recognized on equity securities still held

 

461

 

242

 

 

(2,402

)

 

914

 

 

(214

)

 

(1,698

)

 

(27

)

Service charges

 

6,295

 

4,945

 

 

7,723

 

 

8,233

 

 

8,183

 

 

18,962

 

 

23,281

 

Bankcard revenue

 

6,065

 

5,888

 

 

5,115

 

 

5,162

 

 

5,440

 

 

17,068

 

 

15,931

 

Trust and investment management fee income

 

1,844

 

1,931

 

 

1,799

 

 

2,016

 

 

1,802

 

 

5,574

 

 

5,144

 

Bank owned life insurance

 

1,088

 

848

 

 

1,676

 

 

856

 

 

762

 

 

3,611

 

 

2,910

 

Sale of VISA shares

 

 

 

 

17,837

 

 

 

 

 

 

17,837

 

 

 

Other income

 

1,232

 

783

 

 

1,536

 

 

861

 

 

765

 

 

3,550

 

 

3,139

 

Total Non-Interest Income

 

16,985