City Holding Company (CHCO) investor relations material

Executive summary

• Net income available to common shareholders rose to $31.7 million for Q1 2026, with diluted EPS increasing to $2.20 and return on assets of 1.92%.

• Return on average tangible common equity reached 19.3% for the quarter ended March 31, 2026.

• Net interest income was $59.6 million, up 6.8% year-over-year but down 1.6% sequentially, driven by higher average loan balances and lower yields.

• Non-interest income grew by $0.9 million (4.8%) year-over-year to $19.6 million, while non-interest expense increased by $1.8 million (4.6%) to $39.4 million.

Financial highlights

• Net interest margin improved to 3.97% from 3.84% year-over-year and 3.94% in the previous quarter.

• Return on average assets (ROA) was 1.92%, return on average equity (ROE) was 15.6%, and return on average tangible common equity (ROATCE) was 19.3%.

• Dividend payout ratio was 39.5% for the quarter; effective tax rate was 19.2%.

• Cash and cash equivalents increased 55.8% to $299.0 million; total investment securities decreased 4.1% to $1.47 billion.

• Gross loans declined 0.3% to $4.50 billion; total deposits rose 0.8% to $5.34 billion.

Outlook and guidance

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

• The company maintains a conservative liquidity posture and strong capital ratios, with no immediate plans to opt into the community bank leverage ratio framework.

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

• The company will continue to monitor subsequent events and adjust preliminary results as needed.