City Holding Company Announces Second Quarter Results

CHARLESTON, W. Va.--()--City Holding Company (“Company” or “City”) (NASDAQ:CHCO), a $4.9 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $22.8 million and diluted earnings of $1.38 per share for the quarter ended June 30, 2019. For the second quarter of 2019, the Company achieved a return on assets of 1.84% and a return on tangible equity of 17.9%. The Company reported that net interest income increased $7.3 million (21.9%) from the quarter ended June 30, 2018, while net interest income exclusive of accretion from fair value adjustments from acquisitions increased $6.8 million (20.4%) from the quarter ended June 30, 2018.

Charles R. (“Skip”) Hageboeck, the President and Chief Executive Officer of City Holding Company, commented: “City was able to deliver impressive earnings again in the second quarter of 2019. Net income, diluted earnings per share and reported net interest income were all above both the second quarter of 2018 and the first quarter of 2019. Our net interest margin remained steady from the first quarter of 2019 at 3.65%. City’s balance sheet continues to demonstrate strong credit quality at a time when we see some competitors easing underwriting standards in order to make loans of marginal quality. City’s tangible capital of 10.7% grew 33 basis points during the second quarter of 2019, well above our ratio of 9.9% at June 30, 2018, even as we increased our dividend to shareholders over 15% and have repurchased in excess of 235,000 shares of our common stock in the last twelve months. After adjusting for unusual events, non-interest income in the second quarter was strong, and expenses remained well controlled. However, loan balances are down since December 31, 2018, particularly in the commercial loan portfolio. Nevertheless, embedded in that reality is what I think represents some good news. Originations of new loans during the first half of 2019 were very comparable to that of 2018; but loan payoffs in the first half of 2019 have been dramatically above payoff rates in prior years. The increase in commercial loan payoffs can be attributed to several loans that were paid off upon the sale of the underlying commercial real estate collateral. Some of these loans were refinanced by quasi-government entities which provide financing at rates below what most banks can compete with. The good news is that, loan balances within our core markets were very stable with most payoffs being commercial real estate originated in our Columbus or Charlotte markets. Additionally, several loans totaling about $29 million went to competitors when the customers made unacceptable demands for less stringent terms or structure, despite their own weak financial performance and City chose not to acquiesce to their demands and avoided loans that don’t meet our credit standards. As is typical, there are likely to be additional loan payoffs during the remainder of 2019. However, we currently also have a robust pipeline of new loans which have been approved and scheduled to close in the next several months. While some of these new loans are being originated in Columbus and Charlotte, happily a significant number of these loans are being originated in our core markets, and that is good news. Shareholders might appropriately worry that our core markets aren’t adequately robust, however, our commercial loan pipeline suggests that these core markets in fact remain stable. Looking to the future, we anticipate that commercial loan balances will grow in the third quarter, but by December 31, 2019 may or may not exceed commercial balances on the books as of December 31, 2018.”

Net Interest Income

The Company’s net interest income increased from $40.1 million during the first quarter of 2019 to $40.9 million during the second quarter of 2019. During the second quarter of 2019, the Company’s tax equivalent net interest income increased $0.8 million, or 2.1%, from $40.3 million for the first quarter of 2019 to $41.1 million for the second quarter of 2019. Higher loan yields (10 basis points) increased net interest income by $1.3 million but were partially offset by an increase in rates paid on deposits ($0.6 million). The Company’s reported net interest margin remained steady at 3.65% for the second quarter of 2019 compared to 3.66% for the first quarter of 2019. The reported net interest margin during the first quarter is often positively impacted by the shorter number of days in February which increased City’s net interest margin by 2 basis points in the first quarter of 2019. Excluding the favorable impact of the accretion from fair value adjustments, the net interest margin would have been 3.57% for the quarter ended June 30, 2019 and 3.61% for the quarter ended March 31, 2019.

Credit Quality

The Company’s ratio of nonperforming assets to total loans and other real estate owned improved from 0.43% at March 31, 2019 to 0.41% at June 30, 2019. Total nonperforming assets decreased from $15.4 million at March 31, 2019 to $14.5 million at June 30, 2019. Excluded from this ratio are purchased credit-impaired loans for which the Company estimated cash flows and estimated a credit mark. Such loans would be considered nonperforming loans if the loan’s performance deteriorates below the Company’s initial expectations. Total past due loans decreased from $11.0 million, or 0.31% of total loans outstanding, at March 31, 2019 to $9.5 million, or 0.27% of total loans outstanding, at June 30, 2019.

As a result of the Company’s quarterly analysis of the adequacy of the allowance for loan losses (“ALLL”), the Company recorded a recovery of loan loss provision of $0.6 million in the second quarter of 2019, compared to a recovery of loan loss provision of $2.1 million for the comparable period in 2018 and a recovery of loan loss provision of $0.8 million for the first quarter of 2019. During the periods encompassed in the Company’s historical loss review, charge offs have continued to decline and the Company has recovered significant amounts on loans previously charged off, including a $0.5 million recovery in the second quarter of 2019 from a loan that had previously been charged off during 2014. As a result, the Company’s historical loss rate that is used to compute the allowance not specifically allocated to individual credits has continued to improve and reduced the Company’s ALLL, which resulted in a recovery of loan loss provision in the second quarter of 2019. Changes in the amount of the provision and related allowance are based on the Company’s detailed systematic methodology and are directionally consistent with changes in the composition and quality of the Company’s loan portfolio. The Company believes its methodology for determining the adequacy of its ALLL adequately provides for probable losses inherent in the loan portfolio and produces a provision and allowance for loan losses that is directionally consistent with changes in asset quality and loss experience.

Non-interest Income

Non-interest income was $17.8 million for the second quarter of 2019 as compared to $15.6 million for the second quarter of 2018. During the second quarter of 2019, the Company reported $0.1 million of unrealized fair value gains on the Company’s equity securities compared to $0.5 million of unrealized fair value gains on the Company’s equity securities in the second quarter of 2018. Exclusive of these gains, non-interest income increased from $15.1 million for the second quarter of 2018 to $17.7 million for the second quarter of 2019. This increase was largely attributable to an increase of $1.0 million, or 21.8%, in bankcard revenues and an increase of $0.5 million, or 6.2%, in service charges, with $0.5 million and $0.4 million, respectively, attributable to the late 2018 acquisitions of Poage Bankshares, Inc. (“Poage”) and Farmers Deposit Bancorp, Inc. (“Farmers Deposit”). In addition, other income increased $0.7 million and bank owned life insurance revenues increased $0.4 million due to death benefit proceeds received in the second quarter of 2019. Other income increased due to the completion of the sale of our Virginia Beach, VA branch to Select Bancorp, Inc. on June 28, 2019. As a result of this transaction, the Company recognized a gain of $0.7 million and deposit balances outstanding fell by $25.7 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 and Farmers Deposit. Excluding this expense, non-interest expenses increased $5.3 million (21.3% increase), from $24.9 million in the second quarter of 2018 to $30.2 million in the second quarter of 2019. This increase was primarily due to an increase in salaries and employee benefits of $2.2 million due primarily to the acquisitions of Poage and Farmers Deposit ($1.1 million), annual salary adjustments ($0.6 million), and a nonrecurring health insurance expense ($0.4 million). Other expenses increased $1.4 million due largely to the acquisitions of Poage and Farmers Deposit and a partial write-down of one of the Company’s branches during the second quarter of 2019 ($0.2 million). A portion of the branch’s excess space was donated to a local community charity organization. The Company expects to recover this write-down in approximately 3 years via lower operating costs. Primarily as a result of the acquisitions of Poage and Farmers Deposit, bankcard expenses increased $0.5 million, equipment and software related expenses increased $0.3 million and occupancy related expenses increased $0.3 million from the second quarter of 2018 to the second quarter of 2019.

Balance Sheet Trends

Loans have decreased $68.2 million (1.9%) from December 31, 2018 to $3.52 billion at June 30, 2019. Commercial real estate loans decreased $76.8 million (5.3%) and home equity loans decreased $2.8 million (1.8%). These decreases were partially offset by increases in residential real estate loans of $9.2 million (0.6%) and commercial and industrial loans of $2.5 million (0.9%).

As a result of the sale of the Company’s Virginia Beach branch on June 28, 2019, total deposits fell by $25.7 million. Despite the branch sale, total average depository balances increased $68.1 million, or 1.7%, from the quarter ended March 31, 2019 to the quarter ended June 30, 2019 – reflecting the growth of our large customer base and their depository balances. Average savings deposit balances increased $32.8 million, average noninterest-bearing demand deposit balances increased $32.6 million, and average time deposit balances increased $15.6 million. These increases were partially offset by a decrease in interest-bearing demand deposit balances of $12.8 million.

Income Tax Expense

The Company’s effective income tax rate for the second quarter of 2019 was 20.4% compared to 20.5% for the year ended December 31, 2018, and 20.3% for the quarter ended June 30, 2018.

Capitalization and Liquidity

The Company’s loan to deposit ratio was 87.3% and the loan to asset ratio was 71.2% at June 30, 2019. The Company maintained investment securities totaling 17.8% of assets as of the same date. The Company’s deposit mix is weighted heavily toward checking and saving accounts, which fund 53.9% of assets at June 30, 2019. Time deposits fund 27.7% of assets at June 30, 2019, 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 is strongly capitalized. The Company’s tangible equity ratio increased from 10.0% at December 31, 2018 to 10.7% at June 30, 2019. At June 30, 2019, City National Bank’s Leverage Ratio was 9.51%, its Common Equity Tier I ratio was 14.19%, its Tier I Capital ratio was 14.19%, and its Total Risk-Based Capital ratio was 14.63%. These regulatory capital ratios are significantly above levels required to be considered “well capitalized,” which is the highest possible regulatory designation.

On June 26, 2019, the Board of Directors of the Company approved a quarterly cash dividend of $0.53 per share payable July 31, 2019, to shareholders of record as of July 15, 2019. During the quarter ended June 30, 2019, the Company repurchased 107,000 common shares at a weighted average price of $74.81 as part of a one million share repurchase plan authorized by the Board of Directors in February 2019. As of June 30, 2019, the Company could repurchase approximately 838,000 additional shares under the plan.

City Holding Company is the parent company of City National Bank of West Virginia. City National Bank operates 95 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, 2018 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) 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; (3) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (4) changes in the interest rate environment; (5) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (6) changes in technology and increased competition, including competition from non-bank financial institutions; (7) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers’ performance and creditworthiness; (8) difficulty growing loan and deposit balances; (9) our ability to effectively execute our business plan, including with respect to future acquisitions; (10) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries; (11) 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; (12) regulatory enforcement actions and adverse legal actions; (13) difficulty attracting and retaining key employees; (14) the expected cost savings and any revenue synergies from the merger of City Holding Company, City National Bank of West Virginia, Poage Bankshares, Inc., Town Square Bank, Farmers Deposit Bancorp, Inc. and Farmers Deposit Bank may not be fully realized within the expected time frames; (15) the disruption from the merger of City Holding Company, City National Bank of West Virginia, Poage Bankshares, Inc., Town Square Bank, Farmers Deposit Bancorp, Inc. and Farmers Deposit Bank may make it more difficult to maintain relationships with clients, associates, or suppliers; and (16) 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, 2019 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary June 30, 2019 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY AND SUBSIDIARIES
Financial Highlights
(Unaudited)
 
Three Months Ended Six Months Ended
June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 June 30, 2019 June 30, 2018
 
Earnings
Net Interest Income (fully taxable equivalent)

$

41,113

 

$

40,274

 

$

36,625

 

$

35,745

 

$

33,760

 

$

81,387

 

$

66,594

 

Net Income available to common shareholders

 

22,751

 

 

21,619

 

 

10,713

 

 

20,692

 

 

20,979

 

 

44,370

 

 

38,590

 

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

$

1.38

 

$

1.31

 

$

0.68

 

$

1.34

 

$

1.36

 

$

2.68

 

$

2.49

 

Diluted

 

1.38

 

 

1.30

 

 

0.68

 

 

1.33

 

 

1.35

 

 

2.68

 

 

2.48

 

Weighted average number of shares (in thousands):
Basic

 

16,368

 

 

16,411

 

 

15,603

 

 

15,340

 

 

15,326

 

 

16,390

 

 

15,370

 

Diluted

 

16,386

 

 

16,429

 

 

15,618

 

 

15,358

 

 

15,345

 

 

16,408

 

 

15,390

 

Period-end number of shares (in thousands)

 

16,397

 

 

16,484

 

 

16,555

 

 

15,449

 

 

15,452

 

 

16,397

 

 

15,452

 

Cash dividends declared

$

0.53

 

$

0.53

 

$

0.53

 

$

0.53

 

$

0.46

 

$

1.06

 

$

0.92

 

Book value per share (period-end)

$

38.84

 

$

37.57

 

$

36.29

 

$

33.14

 

$

32.60

 

$

38.84

 

$

32.60

 

Tangible book value per share (period-end)

 

31.44

 

 

30.18

 

 

28.87

 

 

28.08

 

 

27.53

 

 

31.44

 

 

27.53

 

Market data:
High closing price

$

82.56

 

$

80.21

 

$

77.94

 

$

82.79

 

$

78.44

 

$

82.56

 

$

78.44

 

Low closing price

 

73.05

 

 

67.58

 

 

66.36

 

 

75.54

 

 

67.95

 

 

67.58

 

 

65.03

 

Period-end closing price

 

76.26

 

 

76.19

 

 

67.59

 

 

76.80

 

 

75.23

 

 

76.26

 

 

75.23

 

Average daily volume (in thousands)

 

53

 

 

54

 

 

66

 

 

54

 

 

60

 

 

53

 

 

58

 

Treasury share activity:
Treasury shares repurchased (in thousands)

 

107

 

 

55

 

 

69

 

 

7

 

 

10

 

 

162

 

 

214

 

Average treasury share repurchase price

$

74.81

 

$

74.69

 

$

72.89

 

$

77.18

 

$

69.26

 

$

74.77

 

$

68.54

 

 
Key Ratios (percent)
Return on average assets

 

1.84

%

 

1.76

%

 

0.96

%

 

1.90

%

 

2.00

%

 

1.80

%

 

1.85

%

Return on average tangible equity

 

17.9

%

 

17.7

%

 

9.6

%

 

18.9

%

 

19.9

%

 

17.8

%

 

18.3

%

Yield on interest earning assets

 

4.48

%

 

4.46

%

 

4.32

%

 

4.25

%

 

4.15

%

 

4.47

%

 

4.10

%

Cost of interest bearing liabilities

 

1.09

%

 

1.04

%

 

1.00

%

 

0.92

%

 

0.76

%

 

1.07

%

 

0.73

%

Net Interest Margin

 

3.65

%

 

3.66

%

 

3.55

%

 

3.54

%

 

3.52

%

 

3.66

%

 

3.54

%

Non-interest income as a percent of total revenue

 

30.3

%

 

28.3

%

 

28.8

%

 

30.7

%

 

31.7

%

 

29.4

%

 

31.3

%

Efficiency Ratio

 

50.5

%

 

51.2

%

 

47.6

%

 

48.3

%

 

50.7

%

 

51.0

%

 

51.5

%

Price/Earnings Ratio (a)

 

13.84

 

 

14.58

 

 

24.82

 

 

14.37

 

 

13.88

 

 

14.21

 

 

15.13

 

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

 

12.76

%

 

12.49

%

 

12.05

%

 

11.81

%

 

11.88

%

Tangible equity to tangible assets

 

10.70

%

 

10.37

%

 

10.01

%

 

9.99

%

 

9.90

%

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

 

15.91

%

 

15.55

%

 

15.07

%

 

15.94

%

 

15.49

%

Tier I

 

16.03

%

 

15.67

%

 

15.20

%

 

16.49

%

 

16.05

%

Total

 

16.47

%

 

16.13

%

 

15.69

%

 

17.08

%

 

16.65

%

Leverage

 

10.70

%

 

10.62

%

 

11.36

%

 

11.01

%

 

11.13

%

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

 

14.19

%

 

13.89

%

 

13.05

%

 

14.00

%

 

13.26

%

Tier I

 

14.19

%

 

13.89

%

 

13.05

%

 

14.00

%

 

13.26

%

Total

 

14.63

%

 

14.36

%

 

13.55

%

 

14.59

%

 

13.87

%

Leverage

 

9.51

%

 

9.45

%

 

9.81

%

 

9.39

%

 

9.24

%

 
Other (period-end)
Branches

 

95

 

 

97

 

 

100

 

 

87

 

 

86

 

FTE

 

935

 

 

927

 

 

939

 

 

846

 

 

849

 

 
Assets per FTE (in thousands)

$

5,284

 

$

5,305

 

$

5,498

 

$

5,226

 

$

5,152

 

Deposits per FTE (in thousands)

 

4,312

 

 

4,361

 

 

4,462

 

 

4,070

 

 

4,030

 

 
 
(a) The price/earnings ratio is computed based on annualized quarterly earnings.
(b) June 30, 2019 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, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 June 30, 2019 June 30, 2018
 
Interest Income
Interest and fees on loans

$

43,174

 

$

42,279

 

$

37,973

 

$

36,872

 

$

34,292

 

$

85,453

 

$

67,210

 

Interest on investment securities:
Taxable

 

5,732

 

 

5,689

 

 

5,023

 

 

4,216

 

 

4,117

 

 

11,421

 

 

8,098

 

Tax-exempt

 

755

 

 

779

 

 

729

 

 

701

 

 

710

 

 

1,534

 

 

1,413

 

Interest on deposits in depository institutions

 

577

 

 

186

 

 

623

 

 

940

 

 

61

 

 

763

 

 

103

 

Total Interest Income

 

50,238

 

 

48,933

 

 

44,348

 

 

42,729

 

 

39,180

 

 

99,171

 

 

76,824

 

 
Interest Expense
Interest on deposits

 

8,417

 

 

7,767

 

 

6,656

 

 

5,497

 

 

4,918

 

 

16,184

 

 

9,244

 

Interest on short-term borrowings

 

863

 

 

1,052

 

 

1,061

 

 

1,435

 

 

459

 

 

1,915

 

 

919

 

Interest on long-term debt

 

47

 

 

48

 

 

200

 

 

239

 

 

230

 

 

95

 

 

441

 

Total Interest Expense

 

9,327

 

 

8,867

 

 

7,917

 

 

7,171

 

 

5,607

 

 

18,194

 

 

10,604

 

Net Interest Income

 

40,911

 

 

40,066

 

 

36,431

 

 

35,558

 

 

33,573

 

 

80,977

 

 

66,220

 

(Recovery of) provision for loan losses

 

(600

)

 

(849

)

 

(400

)

 

(27

)

 

(2,064

)

 

(1,449

)

 

(1,882

)

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

 

41,511

 

 

40,915

 

 

36,831

 

 

35,585

 

 

35,637

 

 

82,426

 

 

68,102

 

 
Non-Interest Income
Net gains on sale of investment securities

 

21

 

 

88

 

 

-

 

 

-

 

 

-

 

 

109

 

 

-

 

Unrealized gains (losses) recognized on equity securities still held

 

113

 

 

75

 

 

(1,246

)

 

384

 

 

492

 

 

188

 

 

772

 

Service charges

 

7,778

 

 

7,321

 

 

7,921

 

 

7,598

 

 

7,323

 

 

15,099

 

 

14,185

 

Bankcard revenue

 

5,522

 

 

4,969

 

 

4,826

 

 

4,677

 

 

4,532

 

 

10,491

 

 

8,866

 

Trust and investment management fee income

 

1,699

 

 

1,642

 

 

1,737

 

 

1,579

 

 

1,645

 

 

3,341

 

 

3,214

 

Bank owned life insurance

 

1,132

 

 

1,016

 

 

734

 

 

813

 

 

722

 

 

2,148

 

 

1,543

 

Other income

 

1,560

 

 

814

 

 

734

 

 

702

 

 

897

 

 

2,374

 

 

1,525

 

Total Non-Interest Income

 

17,825

 

 

15,925

 

 

14,706

 

 

15,753

 

 

15,611

 

 

33,750

 

 

30,105

 

 
Non-Interest Expense
Salaries and employee benefits

 

15,767

 

 

15,243

 

 

14,017

 

 

13,576

 

 

13,551

 

 

31,010

 

 

26,882

 

Occupancy related expense

 

2,598

 

 

2,732

 

 

2,250

 

 

2,323

 

 

2,346

 

 

5,330

 

 

4,750

 

Equipment and software related expense

 

2,223

 

 

2,191

 

 

2,038

 

 

1,965

 

 

1,895

 

 

4,414

 

 

3,727

 

FDIC insurance expense

 

347

 

 

291

 

 

308

 

 

315

 

 

313

 

 

638

 

 

627

 

Advertising

 

920

 

 

869

 

 

530

 

 

808

 

 

849

 

 

1,789

 

 

1,636

 

Bankcard expenses

 

1,534

 

 

1,182

 

 

1,229

 

 

1,134

 

 

1,064

 

 

2,716

 

 

2,139

 

Postage, delivery, and statement mailings

 

545

 

 

624

 

 

527

 

 

537

 

 

515

 

 

1,169

 

 

1,093

 

Office supplies

 

399

 

 

386

 

 

313

 

 

364

 

 

329

 

 

785

 

 

643

 

Legal and professional fees

 

605

 

 

521

 

 

469

 

 

453

 

 

475

 

 

1,126

 

 

925

 

Telecommunications

 

597

 

 

726

 

 

401

 

 

408

 

 

441

 

 

1,323

 

 

941

 

Repossessed asset losses, net of expenses

 

253

 

 

216

 

 

207

 

 

156

 

 

112

 

 

469

 

 

482

 

Merger related expenses

 

547

 

 

250

 

 

13,015

 

 

242

 

 

-

 

 

797

 

 

-

 

Other expenses

 

4,437

 

 

4,180

 

 

2,874

 

 

2,759

 

 

3,021

 

 

8,617

 

 

6,009

 

Total Non-Interest Expense

 

30,772

 

 

29,411

 

 

38,178

 

 

25,040

 

 

24,911

 

 

60,183

 

 

49,854

 

Income Before Income Taxes

 

28,564

 

 

27,429

 

 

13,359

 

 

26,298

 

 

26,337

 

 

55,993

 

 

48,353

 

Income tax expense

 

5,813

 

 

5,810

 

 

2,646

 

 

5,606

 

 

5,358

 

 

11,623

 

 

9,763

 

Net Income Available to Common Shareholders

$

22,751

 

$

21,619

 

$

10,713

 

$

20,692

 

$

20,979

 

$

44,370

 

$

38,590

 

 
Distributed earnings allocated to common shareholders

$

8,615

 

$

8,661

 

$

8,695

 

$

8,109

 

$

7,039

 

$

17,231

 

$

14,077

 

Undistributed earnings allocated to common shareholders

 

13,939

 

 

12,772

 

 

1,928

 

 

12,382

 

 

13,729

 

 

26,757

 

 

24,136

 

Net earnings allocated to common shareholders

$

22,554

 

$

21,433

 

$

10,623

 

$

20,491

 

$

20,768

 

$

43,988

 

$

38,213

 

 
Average common shares outstanding

 

16,368

 

 

16,411

 

 

15,603

 

 

15,340

 

 

15,326

 

 

16,390

 

 

15,370

 

Shares for diluted earnings per share

 

16,386

 

 

16,429

 

 

15,618

 

 

15,358

 

 

15,345

 

 

16,408

 

 

15,390

 

 
Basic earnings per common share

$

1.38

 

$

1.31

 

$

0.68

 

$

1.34

 

$

1.36

 

$

2.68

 

$

2.49

 

Diluted earnings per common share

$

1.38

 

$

1.30

 

$

0.68

 

$

1.33

 

$

1.35

 

$

2.68

 

$

2.48

 

CITY HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
($ in 000s)
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018
 
Assets
Cash and due from banks

$

53,373

 

$

50,522

 

$

55,016

 

$

49,806

 

$

43,466

 

Interest-bearing deposits in depository institutions

 

115,346

 

 

93,328

 

 

67,975

 

 

256,104

 

 

222,058

 

Cash and cash equivalents

 

168,719

 

 

143,850

 

 

122,991

 

 

305,910

 

 

265,524

 

 
Investment securities available-for-sale, at fair value

 

797,734

 

 

755,081

 

 

723,254

 

 

563,003

 

 

552,603

 

Investment securities held-to-maturity, at amortized cost

 

53,362

 

 

55,326

 

 

60,827

 

 

57,812

 

 

60,030

 

Other securities

 

26,517

 

 

26,182

 

 

28,810

 

 

28,875

 

 

28,920

 

Total investment securities

 

877,613

 

 

836,589

 

 

812,891

 

 

649,690

 

 

641,553

 

 
Gross loans

 

3,519,367

 

 

3,559,322

 

 

3,587,608

 

 

3,146,697

 

 

3,155,468

 

Allowance for loan losses

 

(13,795

)

 

(14,646

)

 

(15,966

)

 

(16,311

)

 

(16,876

)

Net loans

 

3,505,572

 

 

3,544,676

 

 

3,571,642

 

 

3,130,386

 

 

3,138,592

 

 
Bank owned life insurance

 

113,855

 

 

114,256

 

 

113,544

 

 

105,372

 

 

104,773

 

Premises and equipment, net

 

78,263

 

 

78,747

 

 

78,383

 

 

72,484

 

 

72,482

 

Accrued interest receivable

 

12,719

 

 

13,657

 

 

12,424

 

 

11,449

 

 

9,348

 

Net deferred tax assets

 

8,835

 

 

12,734

 

 

17,338

 

 

15,653

 

 

14,528

 

Intangible assets

 

121,322

 

 

121,790

 

 

122,848

 

 

78,215

 

 

78,342

 

Other assets

 

53,569

 

 

51,309

 

 

46,951

 

 

51,643

 

 

49,241

 

Total Assets

$

4,940,467

 

$

4,917,608

 

$

4,899,012

 

$

4,420,802

 

$

4,374,383

 

 
Liabilities
Deposits:
Noninterest-bearing

$

798,056

 

$

793,633

 

$

789,119

 

$

672,042

 

$

684,614

 

Interest-bearing:
Demand deposits

 

891,742

 

 

879,279

 

 

899,568

 

 

802,490

 

 

785,933

 

Savings deposits

 

974,847

 

 

988,182

 

 

934,218

 

 

821,390

 

 

817,547

 

Time deposits

 

1,366,991

 

 

1,381,913

 

 

1,352,654

 

 

1,147,709

 

 

1,133,684

 

Total deposits

 

4,031,636

 

 

4,043,007

 

 

3,975,559

 

 

3,443,631

 

 

3,421,778

 

Short-term borrowings
Federal Funds purchased

 

-

 

 

-

 

 

40,000

 

 

170,000

 

 

181,375

 

Customer repurchase agreements

 

207,033

 

 

194,683

 

 

221,911

 

 

220,124

 

 

196,635

 

Long-term debt

 

4,054

 

 

4,053

 

 

4,053

 

 

16,495

 

 

16,495

 

Other liabilities

 

60,836

 

 

56,624

 

 

56,725

 

 

58,526

 

 

54,346

 

Total Liabilities

 

4,303,559

 

 

4,298,367

 

 

4,298,248

 

 

3,908,776

 

 

3,870,629

 

 
Stockholders' Equity
Preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

 

47,619

 

Capital surplus

 

169,374

 

 

170,215

 

 

169,555

 

 

140,450

 

 

140,091

 

Retained earnings

 

512,911

 

 

498,847

 

 

485,967

 

 

484,017

 

 

471,515

 

Cost of common stock in treasury

 

(98,084

)

 

(91,589

)

 

(87,895

)

 

(136,783

)

 

(136,520

)

Accumulated other comprehensive loss:
Unrealized gain (loss) on securities available-for-sale

 

10,959

 

 

20

 

 

(8,611

)

 

(18,244

)

 

(13,918

)

Underfunded pension liability

 

(5,871

)

 

(5,871

)

 

(5,871

)

 

(5,033

)

 

(5,033

)

Total Accumulated Other Comprehensive Loss

 

5,088

 

 

(5,851

)

 

(14,482

)

 

(23,277

)

 

(18,951

)

Total Stockholders' Equity

 

636,908

 

 

619,241

 

 

600,764

 

 

512,026

 

 

503,754

 

Total Liabilities and Stockholders' Equity

$

4,940,467

 

$

4,917,608

 

$

4,899,012

 

$

4,420,802

 

$

4,374,383

 

 
Regulatory Capital
Total CET 1 capital

$

511,344

 

$

504,148

 

$

492,526

 

$

457,580

 

$

444,869

 

Total tier 1 capital

 

515,344

 

 

508,148

 

 

496,526

 

 

473,580

 

 

460,869

 

Total risk-based capital

 

529,230

 

 

523,053

 

 

512,801

 

 

490,307

 

 

478,255

 

Total risk-weighted assets

 

3,214,153

 

 

3,241,989

 

 

3,267,357

 

 

2,871,241

 

 

2,871,561

 

CITY HOLDING COMPANY AND SUBSIDIARIES
Loan Portfolio
(Unaudited) ($ in 000s)
 
 
June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018
 
Residential real estate (1)

$

1,644,494

$

1,625,647

$

1,635,338

$

1,485,823

$

1,472,916

Home equity - junior liens

 

150,676

 

152,251

 

153,496

 

143,540

 

139,245

Commercial and industrial

 

288,803

 

289,327

 

286,314

 

213,815

 

213,687

Commercial real estate (2)

 

1,378,116

 

1,436,190

 

1,454,942

 

1,268,052

 

1,294,489

Consumer

 

53,356

 

52,483

 

51,190

 

31,869

 

31,137

DDA overdrafts

 

3,922

 

3,424

 

6,328

 

3,598

 

3,994

Gross Loans

$

3,519,367

$

3,559,322

$

3,587,608

$

3,146,697

$

3,155,468

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

$

23,673

$

22,635

$

21,834

$

17,628

$

21,662

(2) - Commercial real estate loans

 

43,432

 

56,282

 

37,869

 

24,110

 

28,567

 
CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information
(Unaudited) ($ in 000s)
 
Three Months Ended Six Months Ended
June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 June 30, 2019 June 30, 2018
Allowance for Loan Losses
Balance at beginning of period

$

14,646

 

$

15,966

 

$

16,311

 

$

16,876

 

$

18,381

 

$

15,966

 

$

18,836

 

 
Charge-offs:
Commercial and industrial

 

(51

)

 

-

 

 

(9

)

 

-

 

 

(385

)

 

(51

)

 

(724

)

Commercial real estate

 

(133

)

 

(45

)

 

(20

)

 

(74

)

 

(118

)

 

(178

)

 

(275

)

Residential real estate

 

(303

)

 

(328

)

 

(218

)

 

(244

)

 

(96

)

 

(631

)

 

(220

)

Home equity

 

(71

)

 

(46

)

 

-

 

 

(108

)

 

(33

)

 

(117

)

 

(111

)

Consumer

 

(111

)

 

(185

)

 

(209

)

 

(206

)

 

(255

)

 

(296

)

 

(354

)

DDA overdrafts

 

(588

)

 

(625

)

 

(725

)

 

(704

)

 

(636

)

 

(1,213

)

 

(1,272

)

Total charge-offs

 

(1,257

)

 

(1,229

)

 

(1,181

)

 

(1,336

)

 

(1,523

)

 

(2,486

)

 

(2,956

)

 
Recoveries:
Commercial and industrial

 

5

 

 

135

 

 

528

 

 

147

 

 

1,476

 

 

140

 

 

1,478

 

Commercial real estate

 

575

 

 

32

 

 

194

 

 

166

 

 

149

 

 

607

 

 

372

 

Residential real estate

 

50

 

 

75

 

 

92

 

 

116

 

 

53

 

 

125

 

 

159

 

Home equity

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Consumer

 

46

 

 

97

 

 

36

 

 

25

 

 

59

 

 

143

 

 

105

 

DDA overdrafts

 

330

 

 

419

 

 

386

 

 

344

 

 

345

 

 

749

 

 

764

 

Total recoveries

 

1,006

 

 

758

 

 

1,236

 

 

798

 

 

2,082

 

 

1,764

 

 

2,878

 

 
Net (charge-offs)/recoveries

 

(251

)

 

(471

)

 

55

 

 

(538

)

 

559

 

 

(722

)

 

(78

)

(Recovery of) provision for loan losses

 

(600

)

 

(849

)

 

(400

)

 

(27

)

 

(2,064

)

 

(1,449

)

 

(1,882

)

Balance at end of period

$

13,795

 

$

14,646

 

$

15,966

 

$

16,311

 

$

16,876

 

$

13,795

 

$

16,876

 

 
Loans outstanding

$

3,519,367

 

$

3,559,322

 

$

3,587,608

 

$

3,146,697

 

$

3,155,468

 

Allowance as a percent of loans outstanding

 

0.39

%

 

0.41

%

 

0.45

%

 

0.52

%

 

0.53

%

Allowance as a percent of non-performing loans

 

115.3

%

 

119.9

%

 

107.8

%

 

142.1

%

 

127.6

%

 
Average loans outstanding

$

3,539,077

 

$

3,576,984

 

$

3,252,939

 

$

3,149,320

 

$

3,138,146

 

$

3,557,927

 

$

3,135,987

 

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

 

0.03

%

 

0.05

%

 

-0.01

%

 

0.07

%

 

-0.07

%

 

0.04

%

 

0.00

%

 
CITY HOLDING COMPANY AND SUBSIDIARIES
Asset Quality Information, continued
(Unaudited) ($ in 000s)
 
June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018
Nonaccrual Loans
Residential real estate

$

2,354

 

$

3,263

 

$

4,275

 

$

3,029

 

$

3,783

 

Home equity

 

161

 

 

41

 

 

138

 

 

-

 

 

168

 

Commercial and industrial

 

2,149

 

 

1,526

 

 

1,676

 

 

818

 

 

863

 

Commercial real estate

 

7,204

 

 

7,282

 

 

8,461

 

 

7,599

 

 

7,707

 

Consumer

 

-

 

 

1

 

 

1

 

 

1

 

 

557

 

Total nonaccrual loans

 

11,868

 

 

12,113

 

 

14,551

 

 

11,447

 

 

13,078

 

Accruing loans past due 90 days or more

 

94

 

 

106

 

 

257

 

 

35

 

 

145

 

Total non-performing loans

 

11,962

 

 

12,219

 

 

14,808

 

 

11,482

 

 

13,223

 

Other real estate owned

 

2,581

 

 

3,186

 

 

4,608

 

 

4,259

 

 

3,636

 

Total non-performing assets

$

14,543

 

$

15,405

 

$

19,416

 

$

15,741

 

$

16,859

 

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

 

0.41

%

 

0.43

%

 

0.54

%

 

0.50

%

 

0.53

%

 
Past Due Loans
Residential real estate

$

7,302

 

$

7,972

 

$

9,991

 

$

4,657

 

$

5,998

 

Home equity

 

322

 

 

720

 

 

1,275

 

 

468

 

 

583

 

Commercial and industrial

 

166

 

 

101

 

 

497

 

 

187

 

 

624

 

Commercial real estate

 

1,026

 

 

1,414

 

 

585

 

 

934

 

 

402

 

Consumer

 

172

 

 

264

 

 

295

 

 

39

 

 

34

 

DDA overdrafts

 

487

 

 

535

 

 

488

 

 

582

 

 

525

 

Total past due loans

$

9,475

 

$

11,006

 

$

13,131

 

$

6,867

 

$

8,166

 

 
Total past due loans as a percent of loans outstanding

 

0.27

%

 

0.31

%

 

0.37

%

 

0.22

%

 

0.26

%

 
Troubled Debt Restructurings ("TDRs")
Residential real estate

$

22,373

 

$

23,481

 

$

23,521

 

$

20,589

 

$

20,731

 

Home equity

 

3,062

 

 

3,018

 

 

3,030

 

 

2,941

 

 

3,196

 

Commercial and industrial

 

83

 

 

89

 

 

98

 

 

108

 

 

119

 

Commercial real estate

 

8,044

 

 

8,164

 

 

8,205

 

 

8,231

 

 

8,279

 

Consumer

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total TDRs

$

33,562

 

$

34,752

 

$

34,854

 

$

31,869

 

$

32,325

 

 

CITY HOLDING COMPANY AND SUBSIDIARIES

Consolidated Average Balance Sheets, Yields, and Rates

(Unaudited) ($ in 000s)
Three Months Ended
June 30, 2019 March 31, 2019 June 30, 2018
Average Yield/ Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2)

$

1,783,718

 

$

20,454

 

4.60

%

$

1,806,233

 

$

20,451

 

4.59

%

$

1,602,103

 

$

16,951

4.24

%

Commercial, financial, and agriculture (2)

 

1,698,186

 

 

21,658

 

5.12

%

 

1,715,524

 

 

20,845

 

4.93

%

 

1,501,618

 

 

16,578

4.43

%

Installment loans to individuals (2), (3)

 

57,173

 

 

889

 

6.24

%

 

55,227

 

 

840

 

6.17

%

 

34,425

 

 

516

6.01

%

Previously securitized loans (4) ***

 

174

 

*** ***

 

144

 

*** ***

 

246

***
Total loans

 

3,539,077

 

 

43,175

 

4.89

%

 

3,576,984

 

 

42,280

 

4.79

%

 

3,138,146

 

 

34,291

4.38

%

Securities:
Taxable

 

749,346

 

 

5,732

 

3.07

%

 

714,413

 

 

5,689

 

3.23

%

 

541,990

 

 

4,117

3.05

%

Tax-exempt (5)

 

100,348

 

 

956

 

3.82

%

 

102,375

 

 

986

 

3.91

%

 

91,135

 

 

898

3.95

%

Total securities

 

849,694

 

 

6,688

 

3.16

%

 

816,788

 

 

6,675

 

3.31

%

 

633,125

 

 

5,015

3.18

%

Deposits in depository institutions

 

124,732

 

 

577

 

1.86

%

 

72,723

 

 

186

 

1.04

%

 

29,164

 

 

61

0.84

%

Total interest-earning assets

 

4,513,503

 

 

50,440

 

4.48

%

 

4,466,495

 

 

49,141

 

4.46

%

 

3,800,435

 

 

39,367

4.15

%

Cash and due from banks

 

52,922

 

 

52,561

 

 

92,426

 

Premises and equipment, net

 

79,116

 

 

78,220

 

 

72,889

 

Goodwill and intangible assets

 

121,628

 

 

122,605

 

 

78,420

 

Other assets

 

189,618

 

 

195,954

 

 

177,299

 

Less: Allowance for loan losses

 

(15,057

)

 

(16,182

)

 

(18,215

)

Total assets

$

4,941,730

 

$

4,899,653

 

$

4,203,254

 

 
Liabilities:
Interest-bearing demand deposits

$

874,039

 

$

909

 

0.42

%

$

886,833

 

$

933

 

0.43

%

$

787,554

 

$

445

0.23

%

Savings deposits

 

980,089

 

 

1,236

 

0.51

%

 

947,337

 

 

1,066

 

0.46

%

 

817,187

 

 

453

0.22

%

Time deposits (2)

 

1,384,017

 

 

6,272

 

1.82

%

 

1,368,465

 

 

5,768

 

1.71

%

 

1,123,261

 

 

4,020

1.44

%

Short-term borrowings

 

199,648

 

 

863

 

1.73

%

 

237,616

 

 

1,052

 

1.80

%

 

208,939

 

 

459

0.88

%

Long-term debt

 

4,053

 

 

47

 

4.65

%

 

4,053

 

 

48

 

4.80

%

 

16,495

 

 

230

5.59

%

Total interest-bearing liabilities

 

3,441,846

 

 

9,327

 

1.09

%

 

3,444,304

 

 

8,867

 

1.04

%

 

2,953,436

 

 

5,607

0.76

%

Noninterest-bearing demand deposits

 

820,689

 

 

788,109

 

 

704,546

 

Other liabilities

 

48,803

 

 

55,372

 

 

45,933

 

Stockholders' equity

 

630,392

 

 

611,868

 

 

499,339

 

Total liabilities and
Stockholders' equity

$

4,941,730

 

$

4,899,653

 

$

4,203,254

 

Net interest income

$

41,113

 

$

40,274

 

$

33,760

Net yield on earning assets

3.65

%

3.66

%

3.56

%

 
(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

$

481

 

$

134

 

$

102

 
(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

$

83

 

$

32

 

$

130

Commercial, financial, and agriculture

 

668

 

 

190

 

 

238

Installment loans to individuals

 

(6

)

 

(6

)

 

4

Time deposits

 

196

 

 

256

 

 

-

$

941

 

$

472

 

$

372

 
(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, 2019 June 30, 2018
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
 
Assets:
Loan portfolio (1):
Residential real estate (2)

$

1,791,263

 

$

40,904

 

4.60

%

$

1,601,554

 

$

33,431

4.21

%

Commercial, financial, and agriculture (2)

 

1,710,281

 

 

42,503

 

5.01

%

 

1,500,698

 

 

32,186

4.33

%

Installment loans to individuals (2), (3)

 

56,383

 

 

1,728

 

6.18

%

 

33,735

 

 

1,020

6.10

%

Previously securitized loans (4) ***

 

317

 

*** ***

 

573

***
Total loans

 

3,557,927

 

 

85,452

 

4.84

%

 

3,135,987

 

 

67,210

4.32

%

Securities:
Taxable

 

731,976

 

 

11,420

 

3.15

%

 

539,366

 

 

8,098

3.03

%

Tax-exempt (5)

 

101,356

 

 

1,942

 

3.86

%

 

91,427

 

 

1,789

3.95

%

Total securities

 

833,332

 

 

13,362

 

3.23

%

 

630,793

 

 

9,887

3.16

%

Deposits in depository institutions

 

98,871

 

 

767

 

1.56

%

 

29,405

 

 

102

0.70

%

Total interest-earning assets

 

4,490,130

 

 

99,581

 

4.47

%

 

3,796,186

 

 

77,199

4.10

%

Cash and due from banks

 

52,743

 

 

82,010

 

Premises and equipment, net

 

78,671

 

 

72,803

 

Goodwill and intangible assets

 

122,114

 

 

78,483

 

Other assets

 

192,768

 

 

172,265

 

Less: Allowance for loan losses

 

(15,617

)

 

(18,814

)

Total assets

$

4,920,809

 

$

4,182,933

 

 
Liabilities:
Interest-bearing demand deposits

$

880,401

 

$

1,842

 

0.42

%

$

785,041

 

$

802

0.21

%

Savings deposits

 

963,804

 

 

2,302

 

0.48

%

 

809,389

 

 

794

0.20

%

Time deposits (2)

 

1,376,284

 

 

12,040

 

1.76

%

 

1,109,784

 

 

7,649

1.39

%

Short-term borrowings

 

218,527

 

 

1,915

 

1.77

%

 

222,696

 

 

919

0.83

%

Long-term debt

 

4,053

 

 

95

 

4.73

%

 

16,495

 

 

441

5.39

%

Total interest-bearing liabilities

 

3,443,069

 

 

18,194

 

1.07

%

 

2,943,405

 

 

10,605

0.73

%

Noninterest-bearing demand deposits

 

804,489

 

 

692,912

 

Other liabilities

 

52,070

 

 

46,178

 

Stockholders' equity

 

621,181

 

 

500,438

 

Total liabilities and
stockholders' equity

$

4,920,809

 

$

4,182,933

 

Net interest income

$

81,387

 

$

66,594

Net yield on earning assets

3.66

%

3.54

%

 
(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

$

615

 

$

225

 
(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

$

115

 

$

240

Commercial, financial, and agriculture

 

858

 

 

388

Installment loans to individuals

 

(12

)

 

14

Time deposits

 

452

 

 

-

$

1,413

 

$

642

 
(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, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 June 30, 2019 June 30, 2018
Net Interest Income/Margin
Net interest income ("GAAP")

$

40,911

 

$

40,066

 

$

36,431

 

$

35,558

 

$

33,573

 

$

80,977

 

$

66,220

 

Taxable equivalent adjustment

 

202

 

 

208

 

 

194

 

 

187

 

 

187

 

 

410

 

 

374

 

Net interest income, fully taxable equivalent

$

41,113

 

$

40,274

 

$

36,625

 

$

35,745

 

$

33,760

 

$

81,387

 

$

66,594

 

 
Average interest earning assets

$

4,513,503

 

$

4,466,495

 

$

4,089,984

 

$

4,005,067

 

$

3,800,435

 

$

4,490,130

 

$

3,796,186

 

 
Net Interest Margin

 

3.65

%

 

3.66

%

 

3.55

%

 

3.54

%

 

3.56

%

 

3.66

%

 

3.54

%

Accretion related to fair value adjustments

 

-0.08

%

 

-0.05

%

 

-0.05

%

 

-0.03

%

 

-0.04

%

 

-0.06

%

 

-0.03

%

Net Interest Margin (excluding accretion)

 

3.57

%

 

3.61

%

 

3.50

%

 

3.51

%

 

3.52

%

 

3.59

%

 

3.50

%

 
Tangible Equity Ratio (period end)
Equity to assets ("GAAP")

 

12.89

%

 

12.59

%

 

12.26

%

 

11.58

%

 

11.52

%

Effect of goodwill and other intangibles, net

 

-2.19

%

 

-2.22

%

 

-2.26

%

 

-1.59

%

 

-1.61

%

Tangible common equity to tangible assets

 

10.70

%

 

10.37

%

 

10.01

%

 

9.99

%

 

9.90

%

 
Return on tangible equity ("GAAP")

 

17.9

%

 

17.7

%

 

9.6

%

 

18.9

%

 

19.9

%

 

17.8

%

 

18.3

%

Impact of merger related expenses

 

0.3

%

 

0.1

%

 

9.2

%

 

0.3

%

 

0.0

%

 

0.2

%

 

0.0

%

Return on tangible equity, excluding merger related expenses

 

18.2

%

 

17.8

%

 

18.8

%

 

19.2

%

 

19.9

%

 

18.0

%

 

18.3

%

 
Return on assets ("GAAP")

 

1.84

%

 

1.76

%

 

0.96

%

 

1.90

%

 

2.00

%

 

1.80

%

 

1.85

%

Impact of merger related expenses

 

0.04

%

 

0.02

%

 

0.92

%

 

0.02

%

 

0.00

%

 

0.03

%

 

0.00

%

Return on Assets, excluding merger related expenses

 

1.88

%

 

1.78

%

 

1.88

%

 

1.92

%

 

2.00

%

 

1.83

%

 

1.85

%

 
Effective Income Tax Rate
Effective tax rate ("GAAP")

 

20.4

%

 

21.2

%

 

19.8

%

 

21.3

%

 

20.3

%

 

20.8

%

 

20.2

%

Impact of FIN 48 adjustments

 

0.00

%

 

0.00

%

 

2.97

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Effective tax rate, excluding FIN 48 adjustments

 

20.4

%

 

21.2

%

 

22.8

%

 

21.3

%

 

20.3

%

 

20.8

%

 

20.2

%

 

 

Contacts

Charles R. Hageboeck, Chief Executive Officer and President
(304) 769-1102

Release Summary

2nd Quarter Earnings

Contacts

Charles R. Hageboeck, Chief Executive Officer and President
(304) 769-1102