Business Wire | Apr 21, 2021 04:30PM EDT

City Holding Company Announces Quarterly Results

Apr. 21, 2021

CHARLESTON, W. Va.--(BUSINESS WIRE)--Apr. 21, 2021--City Holding Company ("Company" or "City") (NASDAQ:CHCO), a $5.9 billion bank holding company headquartered in Charleston, West Virginia, today announced quarterly net income of $19.8 million and diluted earnings of $1.25 per share for the quarter ended March 31, 2021.

Charles R. ("Skip") Hageboeck, the President and Chief Executive Officer of City Holding Company, commented: "Our country and the communities that we serve are emerging from the COVID-19 pandemic and it is encouraging to see economic activity returning to more "normal" conditions. However, the impacts of this crisis continued to impact our financial performance during the first quarter of 2021. Our reported net interest income dipped $0.7 million from the linked quarter ended December 31, 2020 and our net interest margin dropped 8 basis points to 2.91%. Deposit balances continue to grow primarily as a result of the third round of stimulus payments with average deposit balances increasing over $150 million from the quarter ended December 31, 2020. City continues to participate in the government-sponsored Paycheck Protection Program ("PPP") loans administered by the Small Business Administration ("SBA"). Thus far, City has assisted customers in obtaining almost $40 million in new PPP loans during the second round.

"A hallmark for City over the last several years has been our asset quality. Our asset quality remains very strong at March 31, 2021. Nonperforming assets, past due loans, and troubled debt restructurings remain at or below the levels reported at December 31, 2020. Deferred commercial loans remained relatively low at approximately 6% of total commercial balances at March 31, 2021. Hotel and lodging related loans comprise $105 million of the $115 million of these deferrals at March 31, 2021, and our hotel and lodging loan customers are experiencing increasing occupancy rates. Residential mortgage deferrals have dropped to approximately $3 million at March 31, 2021.

"Loan growth has been a particular challenge with interest rates at historic lows. Although our residential mortgage origination levels hit record highs in 2020, balances have decreased as some mortgages were refinanced into fixed rate loans not predominately offered by City. Those trends continued in the first quarter of 2021, but we believe that as mortgage rates and fees charged by agencies increase, our mortgage balances will increase. The decline in commercial loans primarily reflects a seasonal customer, as well as pricing pressure from some competitors. As the economy continues to improve, our view is that commercial loans will regain positive momentum."

Net Interest Income

The Company's net interest income decreased from $38.2 million during the fourth quarter of 2020 to $37.5 million during the first quarter of 2021. The Company's tax equivalent net interest income decreased $0.6 million, or 1.7%, from $38.5 million for the fourth quarter of 2020 to $37.9 million for the first quarter of 2021. Lower loan yields (2 basis points) and lower average loan balances ($50 million) decreased interest income by $0.7 million and $0.5 million, respectively, as compared to the quarter ended December 31, 2020. In addition, lower average investment balances ($30 million) decreased interest income by $0.2 million from the quarter ended December 31, 2020. These decreases were partially offset by lower rates paid on interest-bearing liabilities (primarily time deposits) that lowered interest expense by $0.9 million during the quarter ended March 31, 2021. The Company's reported net interest margin decreased from 2.99% for the fourth quarter of 2020 to 2.91% for the first quarter of 2021.

Balance Sheet Trends

Loans decreased $75.4 million from December 31, 2020 to March 31, 2021, to $3.55 billion. Net of forgiveness received from the SBA of approximately $32 million of PPP loans from the first round, PPP loans increased $7.4 million as a result of the Company's participation in the second round of the PPP lending. Excluding outstanding PPP loans (included in the commercial and industrial loan category), total loans decreased $82.8 million, (2.3%), from December 31, 2020 to $3.48 billion at March 31, 2021. Residential real estate loans decreased $54.8 million (3.5%); commercial real estate loans decreased $12.1 million (0.8%); commercial and industrial loans decreased $9.2 million (2.9%) (excluding PPP loans); and home equity loans decreased $6.5 million (4.7%).

Total average depository balances increased $152.5 million, or 3.4%, from the quarter ended December 31, 2020 to the quarter ended March 31, 2021. Average noninterest-bearing demand deposit balances increased $67.8 million, average savings deposit balances increased $72.5 million, and average interest-bearing demand deposit balances increased $54.7 million. These balances increased despite low average interest rates paid by the Company - 5 basis points for interest-bearing deposits and 6 basis points for savings deposits. We believe that these increases were largely attributable to the third round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (approximately $180 million). These increases were partially offset by lower average time deposit balances of $42.5 million.

Credit Quality

The Company's ratio of nonperforming assets to total loans and other real estate owned increased modestly from 0.38% at December 31, 2020 to 0.39% at March 31, 2021. Total nonperforming assets increased slightly from $13.9 million at December 31, 2020 to $14.0 million at March 31, 2021. Total past due loans decreased from $8.9 million, or 0.25% of total loans outstanding, at December 31, 2020 to $6.6 million, or 0.19% of total loans outstanding, at March 31, 2021.

As a result of the Company's quarterly analysis of the adequacy of the allowance for credit losses ("ACL"), the Company recorded a recovery of credit losses of $0.4 million in the first quarter of 2021, compared to a provision for credit losses of $8.0 million for the comparable period in 2020 and a provision for credit losses of $0.5 million for the fourth quarter of 2020. The recovery of credit losses recorded in the first quarter of 2021 largely reflects the decline in loan balances ($83 million) from the quarter ended December 31, 2020 which resulted in the release of $0.5 million from the allowance for credit losses during the first quarter of 2021. As a result of an improvement in economic conditions in the Company's footprint, net charge-offs for the quarter ended March 31, 2021 were negligible.

Non-interest Income

During the quarter ended March 31, 2020, the Company sold the entirety of its Visa Inc. Class B common shares (86,605) in a cash transaction which resulted in a pre-tax gain of $17.8 million, or $0.84 diluted per share on an after-tax basis. Additionally, the Company reported $0.1 million of unrealized fair value losses on the Company's equity securities during the first quarter of 2021 compared to $2.4 million of unrealized fair value losses on the Company's equity securities during the first quarter of 2020. The Company's portfolio of equity securities consists primarily of holdings in First National Corporation ("FXNC") (a commercial banking company headquartered in Strasburg, VA) and Eagle Financial Services (a commercial banking company headquartered in Berryville, VA). In the first quarter of 2021, the Company sold shares of FXNC and realized a gain of $0.3 million. Exclusive of these items, non-interest income decreased from $17.9 million for the first quarter of 2020 to $16.4 million for the first quarter of 2021. This decrease was largely attributable to a decrease of $1.8 million, or 23.9%, in service charges. In addition, other income, primarily due to lower fees from loan interest rate swap originations, decreased $0.7 million. These decreases were partially offset by higher bankcard revenues ($1.1 million, or 21.5%) compared to the quarter ended March 31, 2020. Bankcard revenue of $6.2 million in the quarter ended March 31, 2021, represents the highest quarterly total in the Company's history as spending by our customers increased significantly in the month of March.

Non-interest Expenses

Non-interest expenses increased $0.3 million, or 1.2%, from $29.5 million in the first quarter of 2020 to $29.8 million in the first quarter of 2021. FDIC insurance expense increased $0.4 million from the quarter ended March 31, 2020 due to credits utilized in the first quarter of 2020.

Income Tax Expense

The Company's effective income tax rate for the first quarter of 2021 was 20.1% compared to 19.5% for the year ended December 31, 2020, and 20.2% for the quarter ended March 31, 2020.

Capitalization and Liquidity

The Company's loan to deposit ratio was 73.9% and the loan to asset ratio was 60.2% at March 31, 2021. The Company maintained investment securities totaling 20.6% of assets as of the same date. The Company's deposit mix is weighted heavily toward checking and saving accounts, which fund 60.9% of assets at March 31, 2021. Time deposits fund 20.5% of assets at March 31, 2021, 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 with tangible equity of $573 million at March 31, 2021. Due primarily to the influx of deposits and unrealized security losses during the quarter ended March 31, 2021, the Company's tangible equity ratio decreased modestly from 10.3% at December 31, 2020 to 9.9% at March 31, 2021. At March 31, 2021, City National Bank's Leverage Ratio was 8.91%, its Common Equity Tier I ratio was 14.75%, its Tier I Capital ratio was 14.75%, and its Total Risk-Based Capital ratio was 15.33%. These regulatory capital ratios are significantly above levels required to be considered "well capitalized," which is the highest possible regulatory designation.

On March 31, 2021, the Board of Directors of the Company approved a quarterly cash dividend of $0.58 per share payable April 30, 2021, to shareholders of record as of April 15, 2021. On March 31, 2021, the Company announced that the Board of Directors authorized the Company to buy back up to 1,000,000 shares of its common stock (approximately 6% of outstanding shares) in open market transactions at prices that are accretive to the earnings per share of continuing shareholders. No time limit was placed on the duration of the share repurchase program. As part of this authorization, the Company terminated its previous repurchase program that was approved in February 2019. The Company had repurchased 908,701 shares under the 2019 program. During the quarter ended March 31, 2021, the Company repurchased 75,000 common shares at a weighted average price of $76.71 per share as part of a one million share repurchase plan authorized by the Board of Directors in February 2019. As of March 31, 2021, the Company could repurchase 1,000,000 additional shares under the current program.

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, 2020 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) theuncertainties 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 March 31, 2021 Form 10-Q. The Company will continue to evaluate the impact of any subsequent events on the preliminary March 31, 2021 results and will adjust the amounts if necessary.

CITY HOLDING COMPANY ANDSUBSIDIARIESFinancial Highlights(Unaudited) Three Months Ended March 31, December September June 30, March 31, 2021 31, 2020 30, 2020 2020 2020 EarningsNet Interest Income $ 37,871 $ 38,514 $ 38,278 $ 38,287 $ 40,603 (fully taxableequivalent)Net Income available to 19,814 22,222 20,126 18,251 29,000 common shareholders Per Share DataEarnings per shareavailable to commonshareholders:Basic $ 1.25 $ 1.40 $ 1.25 $ 1.12 $ 1.79

Diluted 1.25 1.40 1.25 1.12 1.78

Weighted average numberof shares (inthousands):Basic 15,656 15,708 15,950 16,081 16,080

Diluted 15,687 15,733 15,970 16,097 16,101

Period-end number of 15,724 15,768 15,848 16,077 16,140 shares (in thousands)Cash dividends declared $ 0.58 $ 0.58 $ 0.57 $ 0.57 $ 0.57

Book value per share $ 43.99 $ 44.47 $ 43.62 $ 43.15 $ 42.45 (period-end)Tangible book value per 36.47 36.94 36.11 35.72 35.03 share (period-end)Market data:High closing price $ 87.41 $ 70.77 $ 67.98 $ 71.19 $ 82.40

Low closing price 69.05 56.98 55.37 55.18 57.11

Period-end closing price 81.78 69.55 57.61 65.17 66.53

Average daily volume (in 63 56 67 89 69 thousands)Treasury share activity:Treasury shares 75 81 231 79 182 repurchased (inthousands)Average treasury share $ 76.71 $ 60.32 $ 59.49 $ 61.75 $ 71.31 repurchase price Key Ratios (percent)Return on average assets 1.38 % 1.59 % 1.46 % 1.35 % 2.29 %

Return on average 13.5 % 15.3 % 13.8 % 12.6 % 20.6 %tangible equityYield on interest 3.17 % 3.32 % 3.43 % 3.64 % 4.22 %earning assetsCost of interest bearing 0.37 % 0.47 % 0.58 % 0.71 % 0.91 %liabilitiesNet Interest Margin 2.91 % 2.99 % 3.02 % 3.13 % 3.54 %

Non-interest income as a 30.4 % 30.7 % 30.3 % 27.4 % 30.6 %percent of total revenueEfficiency Ratio 54.3 % 51.0 % 51.6 % 53.3 % 49.7 %

Price/Earnings Ratio (a) 16.30 12.41 11.53 14.50 17.63

Capital (period-end)Average Shareholders' 12.30 % 12.46 % 12.71 % 12.91 % 13.50 %Equity to Average AssetsTangible equity to 9.93 % 10.33 % 10.61 % 10.62 % 11.38 %tangible assetsConsolidated City Holding Companyrisk based capital ratios (b):CET I 16.76 % 16.18 % 15.93 % 16.10 % 16.02 %

Tier I 16.76 % 16.18 % 15.93 % 16.10 % 16.02 %

Total 17.33 % 16.75 % 16.50 % 16.69 % 16.46 %

Leverage 10.06 % 10.22 % 10.19 % 10.45 % 11.10 %

City National Bank riskbased capital ratios(b):CET I 14.75 % 14.10 % 14.46 % 14.55 % 14.32 %

Tier I 14.75 % 14.10 % 14.46 % 14.55 % 14.32 %

Total 15.33 % 14.68 % 15.04 % 15.15 % 14.82 %

Leverage 8.91 % 8.97 % 9.32 % 9.29 % 9.98 %

Other (period-end)Branches 94 94 94 94 95

FTE 916 926 925 911 922

Assets per FTE (in $ 6,434 $ 6,219 $ 5,984 $ 6,058 $ 5,525 thousands)Deposits per FTE (in 5,236 5,024 4,799 4,834 4,400 thousands)(a)

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

(b)

March 31, 2021 risk-based capital ratios are estimated.

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

(b) March 31, 2021 risk-based capital ratios are estimated.

CITY HOLDING COMPANY AND SUBSIDIARIESConsolidated Statements of Income(Unaudited) ($ in 000s, except per share data)Three Months EndedMarch 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020Interest IncomeInterest and fees on loans$

34,324

$

35,685

$

35,761

$

37,718

$

41,335

Interest on investment securities:Taxable5,242

5,500

6,266

5,718

5,871

Tax-exempt1,253

1,254

1,132

821

707

Interest on deposits in depository institutions118

60

72

55

304

Total Interest Income40,937

42,499

43,231

44,312

48,217

Interest ExpenseInterest on deposits3,280

4,198

5,123

5,963

7,238

Interest on short-term borrowings117

120

131

279

464

Interest on long-term debt-

-

-

-

100

Total Interest Expense3,397

4,318

5,254

6,242

7,802

Net Interest Income37,540

38,181

37,977

38,070

40,415

(Recovery of) provision for credit losses(440

)

474

1,026

1,250

7,972

Net Interest Income After (Recovery of) Provision for Credit Losses37,980

37,707

36,951

36,820

32,443

Non-Interest IncomeNet gains (losses) on sale of investment securities283

6

-

(6

)

63

Unrealized (losses) gains recognized on equity securities still held(51

)

835

461

242

(2,402

)

Service charges5,881

6,771

6,295

4,945

7,723

Bankcard revenue6,213

5,991

6,065

5,888

5,115

Trust and investment management fee income2,033

2,162

1,844

1,931

1,799

Bank owned life insurance1,460

813

1,088

848

1,676

Sale of VISA shares-

-

-

-

17,837

Other income811

1,143

1,232

783

1,536

Total Non-Interest Income16,630

17,721

16,985

14,631

33,347

Non-Interest ExpenseSalaries and employee benefits15,671

15,989

15,361

14,873

15,851

Occupancy related expense2,622

2,447

2,428

2,402

2,488

Equipment and software related expense2,544

2,660

2,607

2,504

2,429

FDIC insurance expense405

363

355

167

-

Advertising881

538

462

933

843

Bankcard expenses1,584

1,443

1,517

1,498

1,435

Postage, delivery, and statement mailings592

546

513

592

616

Office supplies392

413

396

353

394

Legal and professional fees675

438

548

589

601

Telecommunications690

540

547

531

511

Repossessed asset losses (gains), net of expenses79

(68

)

39

76

198

Other expenses3,674

3,332

3,939

3,950

4,102

Total Non-Interest Expense29,809

28,641

28,712

28,468

29,468

Income Before Income Taxes24,801

26,787

25,224

22,983

36,322

Income tax expense4,987

4,565

5,098

4,732

7,322

Net Income Available to Common Shareholders$

19,814

$

22,222

$

20,126

$

18,251

$

29,000

Distributed earnings allocated to common shareholders$

9,037

$

9,053

$

8,944

$

9,073

$

9,117

Undistributed earnings allocated to common shareholders10,598

12,947

10,984

8,998

19,620

Net earnings allocated to common shareholders$

19,635

$

22,000

$

19,928

$

18,071

$

28,737

Average common shares outstanding15,656

15,708

15,950

16,081

16,080

Shares for diluted earnings per share15,687

15,733

15,970

16,097

16,101

Basic earnings per common share$

1.25

$

1.40

$

1.25

$

1.12

$

1.79

Diluted earnings per common share$

1.25

$

1.40

$

1.25

$

1.12

$

1.78

CITY HOLDING COMPANY ANDSUBSIDIARIESConsolidated Statementsof Income(Unaudited) ($ in 000s,except per share data) Three Months Ended March 31, December September June 30, March 31, 2021 31, 2020 30, 2020 2020 2020 Interest IncomeInterest and fees on $ 34,324 $ 35,685 $ 35,761 $ 37,718 $ 41,335 loansInterest on investmentsecurities:Taxable 5,242 5,500 6,266 5,718 5,871

Tax-exempt 1,253 1,254 1,132 821 707

Interest on deposits in 118 60 72 55 304 depository institutionsTotal Interest Income 40,937 42,499 43,231 44,312 48,217

Interest ExpenseInterest on deposits 3,280 4,198 5,123 5,963 7,238

Interest on short-term 117 120 131 279 464 borrowingsInterest on long-term - - - - 100 debtTotal Interest Expense 3,397 4,318 5,254 6,242 7,802

Net Interest Income 37,540 38,181 37,977 38,070 40,415

(Recovery of) provision (440 ) 474 1,026 1,250 7,972 for credit lossesNet Interest Income After 37,980 37,707 36,951 36,820 32,443 (Recovery of) Provisionfor Credit Losses Non-Interest IncomeNet gains (losses) on 283 6 - (6 ) 63 sale of investmentsecuritiesUnrealized (losses) gains (51 ) 835 461 242 (2,402 )recognized on equitysecurities still heldService charges 5,881 6,771 6,295 4,945 7,723

Bankcard revenue 6,213 5,991 6,065 5,888 5,115

Trust and investment 2,033 2,162 1,844 1,931 1,799 management fee incomeBank owned life insurance 1,460 813 1,088 848 1,676

Sale of VISA shares - - - - 17,837

Other income 811 1,143 1,232 783 1,536

Total Non-Interest Income 16,630 17,721 16,985 14,631 33,347

Non-Interest ExpenseSalaries and employee 15,671 15,989 15,361 14,873 15,851 benefitsOccupancy related expense 2,622 2,447 2,428 2,402 2,488

Equipment and software 2,544 2,660 2,607 2,504 2,429 related expenseFDIC insurance expense 405 363 355 167 -

Advertising 881 538 462 933 843

Bankcard expenses 1,584 1,443 1,517 1,498 1,435

Postage, delivery, and 592 546 513 592 616 statement mailingsOffice supplies 392 413 396 353 394

Legal and professional 675 438 548 589 601 feesTelecommunications 690 540 547 531 511

Repossessed asset losses 79 (68 ) 39 76 198 (gains), net of expensesOther expenses 3,674 3,332 3,939 3,950 4,102

Total Non-Interest 29,809 28,641 28,712 28,468 29,468 ExpenseIncome Before Income 24,801 26,787 25,224 22,983 36,322 TaxesIncome tax expense 4,987 4,565 5,098 4,732 7,322

Net Income Available to $ 19,814 $ 22,222 $ 20,126 $ 18,251 $ 29,000 Common Shareholders Distributed earnings $ 9,037 $ 9,053 $ 8,944 $ 9,073 $ 9,117 allocated to commonshareholdersUndistributed earnings 10,598 12,947 10,984 8,998 19,620 allocated to commonshareholdersNet earnings allocated to $ 19,635 $ 22,000 $ 19,928 $ 18,071 $ 28,737 common shareholders Average common shares 15,656 15,708 15,950 16,081 16,080 outstandingShares for diluted 15,687 15,733 15,970 16,097 16,101 earnings per share Basic earnings per common $ 1.25 $ 1.40 $ 1.25 $ 1.12 $ 1.79 shareDiluted earnings per $ 1.25 $ 1.40 $ 1.25 $ 1.12 $ 1.78 common shareCITY HOLDING COMPANY AND SUBSIDIARIESConsolidated Balance Sheets($ in 000s)(Unaudited)(Unaudited)(Unaudited)(Unaudited)March 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020AssetsCash and due from banks$

97,709

$

77,412

$

76,451

$

87,658

$

92,365

Interest-bearing deposits in depository institutions659,090

451,247

176,267

285,596

18,271

Cash and cash equivalents756,799

528,659

252,718

373,254

110,636

Investment securities available-for-sale, at fair value1,185,245

1,178,789

1,157,399

1,055,185

934,113

Other securities27,182

27,372

26,548

26,144

26,827

Total investment securities1,212,427

1,206,161

1,183,947

1,081,329

960,940

Gross loans3,546,723

3,622,119

3,663,966

3,665,596

3,613,050

Allowance for credit losses(24,076

)

(24,549

)

(24,867

)

(25,199

)

(24,393

)

Net loans3,522,647

3,597,570

3,639,099

3,640,397

3,588,657

Bank owned life insurance118,976

118,243

117,501

116,746

116,000

Premises and equipment, net76,529

76,925

77,031

77,991

78,948

Accrued interest receivable16,231

15,793

16,627

14,200

12,570

Net deferred tax assets1,395

-

-

-

2,159

Intangible assets118,224

118,592

119,004

119,417

119,829

Other assets71,142

96,697

105,361

105,438

98,710

Total Assets$

5,894,370

$

5,758,640

$

5,511,288

$

5,528,772

$

5,088,449

LiabilitiesDeposits:Noninterest-bearing$

1,244,175

$

1,176,990

$

1,061,310

$

1,079,469

$

857,501

Interest-bearing:Demand deposits1,077,749

1,027,201

940,791

921,761

837,966

Savings deposits1,265,038

1,188,003

1,117,684

1,067,254

989,609

Time deposits1,209,873

1,260,022

1,300,291

1,342,631

1,366,977

Total deposits4,796,835

4,652,216

4,420,076

4,411,115

4,052,053

Short-term borrowingsFederal Funds purchased-

-

-

-

9,900

Customer repurchase agreements316,003

295,956

279,866

282,676

224,247

Net deferred tax liabilities-

3,202

1,601

2,598

-

Other liabilities89,847

106,160

118,386

138,633

117,021

Total Liabilities5,202,685

5,057,534

4,819,929

4,835,022

4,403,221

Stockholders' EquityPreferred stock-

-

-

-

-

Common stock47,619

47,619

47,619

47,619

47,619

Capital surplus170,526

171,304

170,526

169,881

170,096

Retained earnings600,396

589,988

576,901

565,804

556,718

Cost of common stock in treasury(142,484

)

(139,038

)

(134,177

)

(120,583

)

(116,665

)

Accumulated other comprehensive income:Unrealized gain on securities available-for-sale21,289

36,894

36,760

37,299

33,730

Underfunded pension liability(5,661

)

(5,661

)

(6,270

)

(6,270

)

(6,270

)

Total Accumulated Other Comprehensive Income15,628

31,233

30,490

31,029

27,460

Total Stockholders' Equity691,685

701,106

691,359

693,750

685,228

Total Liabilities and Stockholders' Equity$

5,894,370

$

5,758,640

$

5,511,288

$

5,528,772

$

5,088,449

Regulatory CapitalTotal CET 1 capital$

563,523

$

557,641

$

548,269

$

548,972

$

547,040

Total tier 1 capital563,523

557,641

548,269

548,972

547,040

Total risk-based capital582,816

577,292

568,153

569,213

561,944

Total risk-weighted assets3,362,595

3,446,774

3,442,629

3,410,589

3,412,591

CITY HOLDINGCOMPANY ANDSUBSIDIARIESConsolidatedBalance Sheets($ in 000s) (Unaudited) (Unaudited) (Unaudited) (Unaudited) March 31, December 31, September 30, June 30, 2020 March 31, 2021 2020 2020 2020 AssetsCash and due from $ 97,709 $ 77,412 $ 76,451 $ 87,658 $ 92,365 banksInterest-bearingdeposits in 659,090 451,247 176,267 285,596 18,271 depositoryinstitutionsCash and cash 756,799 528,659 252,718 373,254 110,636 equivalents Investmentsecurities 1,185,245 1,178,789 1,157,399 1,055,185 934,113 available-for-sale,at fair valueOther securities 27,182 27,372 26,548 26,144 26,827

Total investment 1,212,427 1,206,161 1,183,947 1,081,329 960,940 securities Gross loans 3,546,723 3,622,119 3,663,966 3,665,596 3,613,050

Allowance for (24,076 ) (24,549 ) (24,867 ) (25,199 ) (24,393 )credit lossesNet loans 3,522,647 3,597,570 3,639,099 3,640,397 3,588,657

Bank owned life 118,976 118,243 117,501 116,746 116,000 insurancePremises and 76,529 76,925 77,031 77,991 78,948 equipment, netAccrued interest 16,231 15,793 16,627 14,200 12,570 receivableNet deferred tax 1,395 - - - 2,159 assetsIntangible assets 118,224 118,592 119,004 119,417 119,829

Other assets 71,142 96,697 105,361 105,438 98,710

Total Assets $ 5,894,370 $ 5,758,640 $ 5,511,288 $ 5,528,772 $ 5,088,449

LiabilitiesDeposits:Noninterest-bearing $ 1,244,175 $ 1,176,990 $ 1,061,310 $ 1,079,469 $ 857,501

Interest-bearing:Demand deposits 1,077,749 1,027,201 940,791 921,761 837,966

Savings deposits 1,265,038 1,188,003 1,117,684 1,067,254 989,609

Time deposits 1,209,873 1,260,022 1,300,291 1,342,631 1,366,977

Total deposits 4,796,835 4,652,216 4,420,076 4,411,115 4,052,053

Short-termborrowingsFederal Funds - - - - 9,900 purchasedCustomer repurchase 316,003 295,956 279,866 282,676 224,247 agreementsNet deferred tax - 3,202 1,601 2,598 - liabilitiesOther liabilities 89,847 106,160 118,386 138,633 117,021

Total Liabilities 5,202,685 5,057,534 4,819,929 4,835,022 4,403,221

Stockholders'EquityPreferred stock - - - - -

Common stock 47,619 47,619 47,619 47,619 47,619

Capital surplus 170,526 171,304 170,526 169,881 170,096

Retained earnings 600,396 589,988 576,901 565,804 556,718

Cost of common (142,484 ) (139,038 ) (134,177 ) (120,583 ) (116,665 )stock in treasuryAccumulated othercomprehensiveincome:Unrealized gain on 21,289 36,894 36,760 37,299 33,730 securitiesavailable-for-saleUnderfunded pension (5,661 ) (5,661 ) (6,270 ) (6,270 ) (6,270 )liabilityTotal Accumulated 15,628 31,233 30,490 31,029 27,460 Other ComprehensiveIncomeTotal Stockholders' 691,685 701,106 691,359 693,750 685,228 EquityTotal Liabilities $ 5,894,370 $ 5,758,640 $ 5,511,288 $ 5,528,772 $ 5,088,449 and Stockholders'Equity Regulatory CapitalTotal CET 1 capital $ 563,523 $ 557,641 $ 548,269 $ 548,972 $ 547,040

Total tier 1 563,523 557,641 548,269 548,972 547,040 capitalTotal risk-based 582,816 577,292 568,153 569,213 561,944 capitalTotal risk-weighted 3,362,595 3,446,774 3,442,629 3,410,589 3,412,591 assetsCITY HOLDING COMPANY AND SUBSIDIARIESLoan Portfolio(Unaudited) ($ in 000s)March 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020Commercial and industrial$

371,195

$

372,989

$

383,980

$

369,122

$

308,567

1-4 Family108,131

109,812

114,071

123,814

120,852

Hotels293,176

294,464

295,989

295,179

294,072

Multi-family212,561

215,671

214,394

204,580

205,684

Non Residential Non-Owner Occupied649,683

641,351

628,814

628,628

627,852

Non Residential Owner Occupied199,130

213,484

211,433

215,472

222,489

Commercial real estate (1)1,462,681

1,474,782

1,464,701

1,467,673

1,470,949

Residential real estate (2)1,532,907

1,587,694

1,621,265

1,631,151

1,629,578

Home equity130,009

136,469

140,135

142,672

146,034

Consumer47,224

47,688

50,541

52,278

54,749

DDA overdrafts2,707

2,497

3,344

2,700

3,173

Gross Loans$

3,546,723

$

3,622,119

$

3,663,966

$

3,665,596

$

3,613,050

Construction loans included in:(1) - Commercial real estate loans39,101

40,449

42,449

42,092

44,453

(2) - Residential real estate loans

$

22,129

$

27,078

$

28,947

$

28,252

$

28,870

CITY HOLDINGCOMPANY ANDSUBSIDIARIESLoan Portfolio(Unaudited) ($ in000s) March 31, December September June 30, March 31, 2021 31, 2020 30, 2020 2020 2020 Commercial and $ 371,195 $ 372,989 $ 383,980 $ 369,122 $ 308,567industrial 1-4 Family 108,131 109,812 114,071 123,814 120,852

Hotels 293,176 294,464 295,989 295,179 294,072

Multi-family 212,561 215,671 214,394 204,580 205,684

Non Residential 649,683 641,351 628,814 628,628 627,852Non-Owner OccupiedNon Residential 199,130 213,484 211,433 215,472 222,489Owner OccupiedCommercial real 1,462,681 1,474,782 1,464,701 1,467,673 1,470,949estate ^(1) Residential real 1,532,907 1,587,694 1,621,265 1,631,151 1,629,578estate ^(2)Home equity 130,009 136,469 140,135 142,672 146,034

Consumer 47,224 47,688 50,541 52,278 54,749

DDA overdrafts 2,707 2,497 3,344 2,700 3,173

Gross Loans $ 3,546,723 $ 3,622,119 $ 3,663,966 $ 3,665,596 $ 3,613,050

Construction loansincluded in:^(1) - Commercial 39,101 40,449 42,449 42,092 44,453real estate loans^(2) - Residential $ 22,129 $ 27,078 $ 28,947 $ 28,252 $ 28,870real estate loans

CITY HOLDING COMPANY AND SUBSIDIARIESAsset Quality Information(Unaudited) ($ in 000s)Three Months EndedMarch 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020Allowance for Credit LossesBalance at beginning of period$

24,549

$

24,867

$

25,199

$

24,393

$

11,589

Charge-offs:Commercial and industrial(34

)

(9

)

(757

)

-

(77

)

Commercial real estate(1

)

(616

)

(75

)

(39

)

(383

)

Residential real estate(93

)

(139

)

(252

)

(376

)

(483

)

Home equity(64

)

(88

)

(126

)

(161

)

(45

)

Consumer(147

)

(27

)

(74

)

(36

)

(55

)

DDA overdrafts(453

)

(629

)

(554

)

(459

)

(703

)

Total charge-offs(792

)

(1,508

)

(1,838

)

(1,071

)

(1,746

)

Recoveries:Commercial and industrial46

74

3

5

9

Commercial real estate164

150

44

128

203

Residential real estate74

57

24

8

95

Home equity23

47

33

9

47

Consumer39

55

42

128

13

DDA overdrafts413

333

334

349

451

Total recoveries759

716

480

627

818

Net charge-offs(33

)

(792

)

(1,358

)

(444

)

(928

)

(Recovery of) provision for credit losses(440

)

474

1,026

1,250

7,972

Impact of Adopting ASC 326-

-

-

-

5,760

Balance at end of period$

24,076

$

24,549

$

24,867

$

25,199

$

24,393

Loans outstanding$

3,546,723

$

3,622,119

$

3,663,966

$

3,665,596

$

3,613,050

Allowance as a percent of loans outstanding0.68

%

0.68

%

0.68

%

0.69

%

0.68

%

Allowance as a percent of non-performing loans194.5

%

200.7

%

182.7

%

185.1

%

202.2

%

Average loans outstanding$

3,585,790

$

3,635,673

$

3,661,569

$

3,660,174

$

3,608,868

Net charge-offs (annualized) as a percent of average loans outstanding0.00

%

0.09

%

0.15

%

0.05

%

0.10

%

CITY HOLDING COMPANY AND SUBSIDIARIESAsset Quality Information, continued(Unaudited) ($ in 000s)March 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020Nonaccrual LoansResidential real estate$

3,004

$

2,968

$

3,983

$

3,477

$

2,750

Home equity88

95

74

265

249

Commercial and industrial1,200

768

728

1,087

1,175

Commercial real estate7,792

8,401

8,479

8,715

7,865

Consumer-

-

-

-

1

Total nonaccrual loans12,084

12,232

13,264

13,544

12,040

Accruing loans past due 90 days or more295

-

345

68

26

Total non-performing loans12,379

12,232

13,609

13,612

12,066

Other real estate owned1,625

1,650

2,080

3,997

3,922

Total non-performing assets$

14,004

$

13,882

$

15,689

$

17,609

$

15,988

Non-performing assets as a percent of loans and other real estate owned0.39

%

0.38

%

0.43

%

0.48

%

0.44

%

Past Due LoansResidential real estate$

4,092

$

5,993

$

5,153

$

5,261

$

7,815

Home equity449

575

474

393

430

Commercial and industrial1,358

1,241

691

160

71

Commercial real estate508

625

602

917

1,021

Consumer10

113

121

67

177

DDA overdrafts212

341

379

273

467

Total past due loans$

6,629

$

8,888

$

7,420

$

7,071

$

9,981

Total past due loans as a percent of loans outstanding0.19

%

0.25

%

0.20

%

0.19

%

0.28

%

Troubled Debt Restructurings ("TDRs")Residential real estate$

18,572

$

19,226

$

20,398

$

20,631

$

21,413

Home equity1,956

2,001

2,100

2,138

2,294

Commercial and industrial-

-

-

-

-

Commercial real estate4,615

4,638

4,894

4,915

5,163

Consumer211

277

260

185

184

Total TDRs$

25,354

$

26,142

$

27,652

$

27,869

$

29,054

CITY HOLDINGCOMPANY ANDSUBSIDIARIESAsset QualityInformation(Unaudited) ($in 000s) Three Months Ended March 31, December 31, September 30, June 30, 2020 March 31, 2021 2020 2020 2020Allowance forCredit LossesBalance at $ 24,549 $ 24,867 $ 25,199 $ 24,393 $ 11,589 beginning ofperiod Charge-offs:Commercial and (34 ) (9 ) (757 ) - (77 )industrialCommercial (1 ) (616 ) (75 ) (39 ) (383 )real estateResidential (93 ) (139 ) (252 ) (376 ) (483 )real estateHome equity (64 ) (88 ) (126 ) (161 ) (45 )

Consumer (147 ) (27 ) (74 ) (36 ) (55 )

DDA overdrafts (453 ) (629 ) (554 ) (459 ) (703 )

Total (792 ) (1,508 ) (1,838 ) (1,071 ) (1,746 )charge-offs Recoveries:Commercial and 46 74 3 5 9 industrialCommercial 164 150 44 128 203 real estateResidential 74 57 24 8 95 real estateHome equity 23 47 33 9 47

Consumer 39 55 42 128 13

DDA overdrafts 413 333 334 349 451

Total 759 716 480 627 818 recoveries Net (33 ) (792 ) (1,358 ) (444 ) (928 )charge-offs(Recovery of) (440 ) 474 1,026 1,250 7,972 provision forcredit lossesImpact of - - - - 5,760 Adopting ASC326Balance at end $ 24,076 $ 24,549 $ 24,867 $ 25,199 $ 24,393 of period Loans $ 3,546,723 $ 3,622,119 $ 3,663,966 $ 3,665,596 $ 3,613,050 outstandingAllowance as apercent of 0.68 % 0.68 % 0.68 % 0.69 % 0.68 %loansoutstandingAllowance as apercent of 194.5 % 200.7 % 182.7 % 185.1 % 202.2 %non-performingloans Average loans $ 3,585,790 $ 3,635,673 $ 3,661,569 $ 3,660,174 $ 3,608,868 outstandingNetcharge-offs(annualized) 0.00 % 0.09 % 0.15 % 0.05 % 0.10 %as a percentof averageloansoutstanding CITY HOLDINGCOMPANY ANDSUBSIDIARIESAsset QualityInformation,continued(Unaudited) ($in 000s) March 31, December 31, September 30, June 30, 2020 March 31, 2021 2020 2020 2020NonaccrualLoansResidential $ 3,004 $ 2,968 $ 3,983 $ 3,477 $ 2,750 real estateHome equity 88 95 74 265 249

Commercial and 1,200 768 728 1,087 1,175 industrialCommercial 7,792 8,401 8,479 8,715 7,865 real estateConsumer - - - - 1

Total 12,084 12,232 13,264 13,544 12,040 nonaccrualloansAccruing loans 295 - 345 68 26 past due 90days or moreTotal 12,379 12,232 13,609 13,612 12,066 non-performingloansOther real 1,625 1,650 2,080 3,997 3,922 estate ownedTotal $ 14,004 $ 13,882 $ 15,689 $ 17,609 $ 15,988 non-performingassets Non-performingassets as apercent of 0.39 % 0.38 % 0.43 % 0.48 % 0.44 %loans andother realestate owned Past Due LoansResidential $ 4,092 $ 5,993 $ 5,153 $ 5,261 $ 7,815 real estateHome equity 449 575 474 393 430

Commercial and 1,358 1,241 691 160 71 industrialCommercial 508 625 602 917 1,021 real estateConsumer 10 113 121 67 177

DDA overdrafts 212 341 379 273 467

Total past due $ 6,629 $ 8,888 $ 7,420 $ 7,071 $ 9,981 loans Total past dueloans as a 0.19 % 0.25 % 0.20 % 0.19 % 0.28 %percent ofloansoutstanding Troubled DebtRestructurings("TDRs")Residential $ 18,572 $ 19,226 $ 20,398 $ 20,631 $ 21,413 real estateHome equity 1,956 2,001 2,100 2,138 2,294

Commercial and - - - - - industrialCommercial 4,615 4,638 4,894 4,915 5,163 real estateConsumer 211 277 260 185 184

Total TDRs $ 25,354 $ 26,142 $ 27,652 $ 27,869 $ 29,054

CITY HOLDING COMPANY AND SUBSIDIARIESConsolidated Average Balance Sheets, Yields, and Rates(Unaudited) ($ in 000s)Three Months EndedMarch 31, 2021December 31, 2020March 31, 2020AverageYield/AverageYield/AverageYield/BalanceInterestRateBalanceInterestRateBalanceInterestRateAssets:Loan portfolio (1):Residential real estate (2)$

1,696,064

$

16,853

4.03

%

$

1,744,952

$

17,623

4.02

%

$

1,780,473

$

19,881

4.49

%

Commercial, financial, and agriculture (2)1,838,928

16,542

3.65

%

1,837,044

17,077

3.70

%

1,770,178

20,476

4.65

%

Installment loans to individuals (2), (3)50,798

713

5.69

%

53,677

800

5.93

%

58,217

863

5.96

%

Previously securitized loans (4)***215

******184

******115

***Total loans3,585,790

34,323

3.88

%

3,635,673

35,684

3.90

%

3,608,868

41,335

4.61

%

Securities:Taxable945,177

5,242

2.25

%

976,897

5,500

2.24

%

810,766

5,871

2.91

%

Tax-exempt (5)239,589

1,585

2.68

%

238,198

1,587

2.65

%

94,591

895

3.81

%

Total securities1,184,766

6,827

2.34

%

1,215,095

7,087

2.32

%

905,357

6,766

3.01

%

Deposits in depository institutions513,469

118

0.09

%

275,106

60

0.09

%

102,932

304

1.19

%

Total interest-earning assets5,284,025

41,268

3.17

%

5,125,874

42,831

3.32

%

4,617,157

48,405

4.22

%

Cash and due from banks79,683

73,900

70,763

Premises and equipment, net76,837

76,956

77,368

Goodwill and intangible assets118,453

118,855

120,091

Other assets217,453

231,309

195,875

Less: Allowance for credit losses(24,909

)

(25,112

)

(15,905

)

Total assets$

5,751,542

$

5,601,782

$

5,065,349

Liabilities:Interest-bearing demand deposits$

1,008,283

$

124

0.05

%

$

953,604

$

171

0.07

%

$

869,976

$

468

0.22

%

Savings deposits1,221,169

183

0.06

%

1,148,717

225

0.08

%

1,005,829

700

0.28

%

Time deposits (2)1,236,197

2,973

0.98

%

1,278,698

3,801

1.18

%

1,365,268

6,070

1.79

%

Short-term borrowings290,766

117

0.16

%

287,059

120

0.17

%

209,010

464

0.89

%

Long-term debt-

-

-

-

-

-

3,340

100

12.04

%

Total interest-bearing liabilities3,756,415

3,397

0.37

%

3,668,078

4,317

0.47

%

3,453,423

7,802

0.91

%

Noninterest-bearing demand deposits1,197,910

1,130,084

852,384

Other liabilities89,695

105,445

75,922

Stockholders' equity707,522

698,175

683,620

Total liabilities andstockholders' equity$

5,751,542

$

5,601,782

$

5,065,349

Net interest income$

37,871

$

38,514

$

40,603

Net yield on earning assets2.91

%

2.99

%

3.54

%

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

835

$

962

$

116

(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$

106

$

153

$

151

Commercial, financial, and agriculture325

304

1,240

Installment loans to individuals28

29

39

Time deposits48

155

155

$

507

$

641

$

1,585

(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 $0.(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.CITY HOLDING COMPANYAND SUBSIDIARIESConsolidated AverageBalance Sheets,Yields, and Rates(Unaudited) ($ in000s) Three Months Ended March 31, 2021 December 31, 2020 March 31, 2020 Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets:Loan portfolio ^(1):Residential real $ 1,696,064 $ 16,853 4.03 % $ 1,744,952 $ 17,623 4.02 % $ 1,780,473 $ 19,881 4.49 %estate ^(2)Commercial, financial, 1,838,928 16,542 3.65 % 1,837,044 17,077 3.70 % 1,770,178 20,476 4.65 %and agriculture ^(2)Installment loans to 50,798 713 5.69 % 53,677 800 5.93 % 58,217 863 5.96 %individuals ^(2), (3)Previously securitized *** 215 *** *** 184 *** *** 115 ***loans ^(4)Total loans 3,585,790 34,323 3.88 % 3,635,673 35,684 3.90 % 3,608,868 41,335 4.61 %

Securities:Taxable 945,177 5,242 2.25 % 976,897 5,500 2.24 % 810,766 5,871 2.91 %

Tax-exempt ^(5) 239,589 1,585 2.68 % 238,198 1,587 2.65 % 94,591 895 3.81 %

Total securities 1,184,766 6,827 2.34 % 1,215,095 7,087 2.32 % 905,357 6,766 3.01 %

Deposits in depository 513,469 118 0.09 % 275,106 60 0.09 % 102,932 304 1.19 %institutionsTotal interest-earning 5,284,025 41,268 3.17 % 5,125,874 42,831 3.32 % 4,617,157 48,405 4.22 %assetsCash and due from 79,683 73,900 70,763 banksPremises and 76,837 76,956 77,368 equipment, netGoodwill and 118,453 118,855 120,091 intangible assetsOther assets 217,453 231,309 195,875

Less: Allowance for (24,909 ) (25,112 ) (15,905 )credit lossesTotal assets $ 5,751,542 $ 5,601,782 $ 5,065,349

Liabilities:Interest-bearing $ 1,008,283 $ 124 0.05 % $ 953,604 $ 171 0.07 % $ 869,976 $ 468 0.22 %demand depositsSavings deposits 1,221,169 183 0.06 % 1,148,717 225 0.08 % 1,005,829 700 0.28 %

Time deposits ^(2) 1,236,197 2,973 0.98 % 1,278,698 3,801 1.18 % 1,365,268 6,070 1.79 %

Short-term borrowings 290,766 117 0.16 % 287,059 120 0.17 % 209,010 464 0.89 %

Long-term debt - - - - - - 3,340 100 12.04 %

Total interest-bearing 3,756,415 3,397 0.37 % 3,668,078 4,317 0.47 % 3,453,423 7,802 0.91 %liabilitiesNoninterest-bearing 1,197,910 1,130,084 852,384 demand depositsOther liabilities 89,695 105,445 75,922

Stockholders' equity 707,522 698,175 683,620

Total liabilities andstockholders' equity $ 5,751,542 $ 5,601,782 $ 5,065,349

Net interest income $ 37,871 $ 38,514 $ 40,603

Net yield on earning 2.91 % 2.99 % 3.54 %assets (1)^ For purposes of this table, non-accruing loans have been included inaverage balances and the following amounts (in thousands) of net loan fees havebeen included in interest income: Loan fees, net $ 835 $ 962 $ 116

(2) Included in the above table are the following amounts (in thousands) forthe accretion of the fair value adjustments related to the Company'sacquisitions: Residential real $ 106 $ 153 $ 151estateCommercial, financial, 325 304 1,240and agricultureInstallment loans to 28 29 39individualsTime deposits 48 155 155

$ 507 $ 641 $ 1,585

(3) Includes the Company's consumer and DDA overdrafts loan categories.(4) Effective January 1, 2012, the carrying value of the Company's previouslysecuritized loans was reduced to $0.(5) Computed on a fully federal tax-equivalent basis assuming a tax rate ofapproximately 21%.CITY HOLDING COMPANY AND SUBSIDIARIESNon-GAAP Reconciliations(Unaudited) ($ in 000s, except per share data)Three Months EndedMarch 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020Net Interest Income/MarginNet interest income ("GAAP")$

37,540

$

38,181

$

37,977

$

38,070

$

40,415

Taxable equivalent adjustment331

333

301

217

188

Net interest income, fully taxable equivalent$

37,871

$

38,514

$

38,278

$

38,287

$

40,603

Average interest earning assets$

5,284,025

$

5,125,874

$

5,047,868

$

4,914,242

$

4,617,157

Net Interest Margin2.91

%

2.99

%

3.02

%

3.13

%

3.54

%

Accretion related to fair value adjustments-0.04

%

-0.05

%

-0.05

%

-0.08

%

-0.14

%

Net Interest Margin (excluding accretion)2.87

%

2.94

%

2.97

%

3.05

%

3.40

%

Tangible Equity Ratio (period end)Equity to assets ("GAAP")11.74

%

12.18

%

12.54

%

12.55

%

13.47

%

Effect of goodwill and other intangibles, net-1.81

%

-1.85

%

-1.93

%

-1.93

%

-2.09

%

Tangible common equity to tangible assets9.93

%

10.33

%

10.61

%

10.62

%

11.38

%

Return on Tangible EquityReturn on tangible equity ("GAAP")13.5

%

15.3

%

13.8

%

12.6

%

20.6

%

Impact of sale of VISA shares-

-

-

-

-9.7

%

Return on tangible equity, excluding sale of VISA shares13.5

%

15.3

%

13.8

%

12.6

%

10.9

%

Return on AssetsReturn on assets ("GAAP")1.38

%

1.59

%

1.46

%

1.35

%

2.29

%

Impact of sale of VISA shares-

-

-

-

-1.08

%

Return on assets, excluding sale of VISA shares1.38

%

1.59

%

1.46

%

1.35

%

1.21

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210421005928/en/

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