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CITY HOLDING CO (CHCO)·Q1 2025 Earnings Summary

Executive Summary

  • EPS of $2.06 beat Wall Street consensus by ~$0.21 (11.6%); total revenue of ~$$74.6M exceeded consensus by ~$1.4M (1.9%). Values retrieved from S&P Global.* Actuals: EPS $2.06; net income $30.3M .
  • Net interest margin improved 9 bps QoQ to 3.84% as funding costs fell 11 bps; deposits rose $114.3M QoQ, supporting balance-sheet growth .
  • Credit quality mixed: NPA ratio increased to 0.38% from 0.35% QoQ, but past due loans fell to 0.18% of loans (from 0.21%); no credit loss provision recorded in Q1 2025 .
  • Capital and liquidity remained strong: CET1 (HoldCo) 16.84%, CET1 (bank) 14.38%; quarterly dividend maintained at $0.79 and 80.6K shares repurchased at $117.42, leaving 740.9K authorized .
  • Potential stock catalysts: margin trajectory and top-line beat; watch credit metrics (CRE nonaccruals) and expense discipline into Q2 .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.84% (from 3.75%) driven by an 11 bp drop in cost of interest-bearing liabilities and loan growth; management highlighted lower funding costs as a key driver .
  • Non-interest income grew YoY to $18.7M (from $17.9M), with wealth & investment management fees +10.6% and BOLI +24.4% YoY .
  • Deposits increased $114.3M QoQ; deposit mix continues to be anchored in checking/savings funding 60.1% of assets, supporting lower-cost funding .

What Went Wrong

  • Non-performing assets rose to $16.5M (0.38% of loans+OREO) from $15.0M (0.35%) in Q4; CRE nonaccruals increased to $9.7M .
  • Efficiency ratio worsened QoQ to 49.6% (from 48.4%) as non-interest expenses increased 4.8% YoY to $37.6M (equipment/software, other expenses, and bankcard costs) .
  • Loan yields declined 4 bps, partially offsetting NIM gains; management cited this as a headwind to net interest income growth .

Financial Results

Core P&L metrics

MetricQ3 2024Q4 2024Q1 2025
Net Interest Income (GAAP) ($USD Millions)$55.6 $55.6 $55.8
Non-Interest Income ($USD Millions)$20.3 $16.1 $18.7
Net Income ($USD Millions)$29.8 $28.7 $30.3
Diluted EPS ($USD)$2.02 $1.94 $2.06

Margins and returns

MetricQ3 2024Q4 2024Q1 2025
Net Interest Margin (%)3.87 3.75 3.84
Efficiency Ratio (%)48.8 48.4 49.6
Return on Average Assets (%)1.87 1.75 1.89
Return on Avg Tangible Equity (%)20.9 19.4 20.7

Asset quality KPIs

MetricQ3 2024Q4 2024Q1 2025
NPA as % of Loans + OREO0.39% 0.35% 0.38%
Past Due Loans ($USD Millions)$11.3 $8.8 $7.5
Allowance / Loans (%)0.53% 0.51% 0.51%
Net Charge-offs (annualized) %0.20% 0.02% 0.02%
Provision for Credit Losses ($USD Millions)$1.2 $0.3 $0.0

Balance sheet and funding

MetricQ3 2024Q4 2024Q1 2025
Total Deposits ($USD Millions)$5,102.7 $5,144.2 $5,258.5
Gross Loans ($USD Millions)$4,157.8 $4,274.8 $4,285.8
Loan/Deposit Ratio (%)81.5 83.1 81.5

Revenue vs. Estimates (S&P Global)

MetricQ4 2024 ConsensusQ4 2024 ActualQ1 2025 ConsensusQ1 2025 Actual# of Estimates (Q4/Q1)
Total Revenue ($USD)$75.017M*$71.407M*$73.138M*$74.552M*4 / 5*
Primary EPS ($USD)$1.934*$1.94*$1.847*$2.06 5 / 6*

Values retrieved from S&P Global.*

Loan portfolio breakdown (Q1 2025)

CategoryBalance ($USD Millions)
Commercial & Industrial$423.3
Commercial Real Estate (total)$1,759.0
Non-Res Non-Owner Occupied$742.3
Non-Res Owner Occupied$232.7
Hotels$372.8
Multi-family$215.5
Residential Real Estate$1,841.9
Home Equity$203.3
Consumer + DDA Overdrafts$58.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025$0.79 (Q4 2024) $0.79 payable Apr 30, 2025 Maintained
Share repurchase remainingQ1 2025~821,000 shares (Dec 31, 2024) 740,900 shares remaining (Mar 31, 2025) Lowered (utilized)
Financial guidance (revenue/margins/OpEx)Q1 2025None providedNone providedN/A

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available; themes are synthesized from press releases.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Net interest margin & cost of fundsNIM steady at 3.87%; funding costs up +7 bps QoQ NIM fell to 3.75% QoQ; cost of interest-bearing liabilities 2.14% NIM up to 3.84%; cost of interest-bearing liabilities fell 11 bps QoQ Improving margin trajectory QoQ
Credit quality (nonaccruals/NPA)NPA up to 0.39%; movie theater charge-off $2.0M; CRE nonaccruals rose NPA 0.35%; elevated nonaccruals persist NPA 0.38%; past dues fell; no provision recorded Mixed: NPA slightly higher, but past dues lower
Deposits & mixDeposits +$35M QoQ; mix shifts toward time deposits Deposits +$209.9M YoY; time deposits cost 3.67% Deposits +$114.3M QoQ; checking/savings fund 60.1% of assets Continued growth; mix supportive of low-cost funding
Expenses/efficiencyNon-interest expense +7.5% YoY; efficiency 48.8% Non-interest expense +5.2% YoY; efficiency 48.4% Non-interest expense +4.8% YoY; efficiency 49.6% Slight deterioration QoQ
Capital & liquidityCET1 (bank) 16.0%, leverage 10.17%; strong buffers CET1 (HoldCo) 16.51%, CET1 (bank) 13.55%; liquidity facilities noted CET1 (HoldCo) 16.84%, CET1 (bank) 14.38%; $1.6B additional borrowing capacity Strong/stable; improved QoQ

Management Commentary

  • “As we start 2025, City’s strengths from a year ago remain in place. We continue to have an exceptional customer franchise, an extraordinary team, an enviable cost of funds, strong asset quality…” — CEO Charles Hageboeck (Q4 2024 annual release) .
  • Funding capacity and liquidity: City National had capacity to borrow an additional $1.6B under Fed/FHLB facilities; $750M of securities unpledged, underpinning contingency funding .
  • Margin drivers: NIM improved QoQ as cost of interest-bearing liabilities declined 11 bps; average loan balances increased ~$76.8M .
  • Non-interest income growth: Wealth & investment management fees +10.6% YoY; BOLI income +24.4% YoY .

Q&A Highlights

A Q1 2025 earnings call transcript could not be located; no Q&A disclosures were available in our document set. Press release and 8-K provide the quarter’s qualitative context .

Estimates Context

  • Q1 2025: EPS $2.06 beat consensus $1.85 (~+$0.21); total revenue ~$$74.6M beat consensus $73.1M (+$1.4M). # of estimates: EPS 6, revenue 5.*
  • Q4 2024: EPS $1.94 in line with consensus $1.93; total revenue ~$71.4M missed consensus ~$75.0M.*
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Margin inflection: QoQ NIM expansion (3.84%) driven by lower funding costs is a positive setup into Q2; monitor loan yields (-4 bps) and deposit mix sustainability .
  • Clean credit quarter despite higher NPA: no provision recorded; watch CRE nonaccruals (now $9.7M) and the residual impact of prior theater charge-off .
  • Top-line beat: revenue and EPS above consensus, aided by stable NII and healthier fee income; this can support near-term sentiment.*
  • Expense vigilance: efficiency ratio ticked higher to 49.6%; continued investment in equipment/software suggests careful cost monitoring is warranted .
  • Capital return: dividend maintained at $0.79 and ongoing buybacks (80.6K shares at $117.42) with 740.9K authorization remaining provide downside support .
  • Liquidity strength: $1.6B borrowing capacity and $750M unpledged securities underpin resilience in varied rate scenarios .
  • Positioning: With strong capital (CET1 HoldCo 16.84%) and deposit growth, City is well-positioned; watch macro-driven credit normalization and trajectory of fees to gauge medium-term ROE durability .
Note: No Q1 2025 earnings call transcript was available; synthesis relies on the company’s 8-K and press release. Consensus and actual revenue/EPS values marked with an asterisk (*) are retrieved from S&P Global.