City Holding Company Announces Second Quarter Results

0

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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