Business Wire | Jan 25, 2022 07:30AM EST

City Holding Company Announces Annual Earnings

Jan. 25, 2022

CHARLESTON, W. Va.--(BUSINESS WIRE)--Jan. 25, 2022--City Holding Company ("Company" or "City") (NASDAQ:CHCO), a $6.0 billion bank holding company headquartered in Charleston, West Virginia, today announced net income of $88.1 million and record diluted earnings of $5.66 per share for the year ended December 31, 2021.

Net Interest Income

The Company's net interest income increased from $154.6 million for the year ended December 31, 2020 to $155.6 million for the year ended December 31, 2021. The Company's tax equivalent net interest income increased $1.2 million, or 0.8%, from $155.7 million for the year ended December 31, 2020 to $156.9 million for the year ended December 31, 2021. The Company recognized $4.0 million of loan fees associated with PPP loans during 2021 as compared to $1.6 million during 2020. However, lower loan yields (which fell 29 basis points) decreased net interest income by $10.0 million. Additionally, lower average loan balances ($95.6 million) lowered net interest income by $4.2 million and a decrease in accretion from fair value adjustments decreased interest income by $1.7 million. Higher investment balances (which increased $262.2 million) increased net interest income by $7.2 million, while investment yields (which decreased by 45 basis points) decreased net interest income by $6.0 million. Lower rates paid on interest bearing liabilities (40 basis points) and lower average time deposit balances (down $172.3 million) increased net interest income by $11.7 million and $2.6 million, respectively. The Company's reported net interest margin declined from 3.16% for the year ended December 31, 2020 to 2.89% for the year ended December 31, 2021. Excluding the favorable impact of the accretion from the fair value adjustments, the net interest margin would have been 2.85% for the year ended December 31, 2021 and 3.08% for the year ended December 31, 2020.

The Company's net interest income increased from $39.5 million during the third quarter of 2021 to $40.6 million during the fourth quarter of 2021. During the fourth quarter of 2021, the Company's tax equivalent net interest income increased $1.1 million, or 2.8%, to $40.9 million from $39.8 million during the third quarter of 2021. An increase in loan yields (which increased 16 basis points), largely due to interest recoveries on a loan that previously had been classified as a nonperforming loan, increased net interest income by $1.4 million, and lower rates paid on time deposits (which decreased 7 basis points) increased overall net interest income by $0.2 million. These increases were partially offset by lower investment yields (17 basis points) which lowered net interest income by $0.6 million. The Company's reported net interest margin increased from 2.89% for the third quarter of 2021 to 2.94% for the fourth quarter of 2021. Excluding the favorable impact of the accretion from fair value adjustments, the net interest margin would have been 2.91% for the quarter ended December 31, 2021 and 2.86% for the quarter ended September 30, 2021.

Credit Quality

The Company's ratio of nonperforming assets to total loans and other real estate owned decreased from 0.38% at December 31, 2020 to 0.21% at December 31, 2021. Total nonperforming assets decreased from $13.9 million at December 31, 2020 to $7.6 million at December 31, 2021. Total past due loans decreased from $8.9 million, or 0.25% of total loans outstanding, at December 31, 2020 to $6.8 million, or 0.19% of total loans outstanding, at December 31, 2021.

As a result of the Company's quarterly analysis of the adequacy of the ACL, the Company did not record a provision for credit losses in the fourth quarter of 2021 and a recovery of credit losses of $3.2 million for the year ended December 31, 2021, compared to a provision for credit losses of $0.5 million and $10.7 million for the comparable periods in 2020. The determination of the Company's allowance for credit losses is largely dependent on expected unemployment ranges. Due to improvements in the outlook for unemployment ranges utilized by the Company and adjustments to other qualitative and other factors, during 2021 the Company partially recovered a portion of the provision for credit losses incurred in the quarter ended March 31, 2020 related to the COVID-19 pandemic.

Non-interest Income

Non-interest income was $69.6 million for 2021 as compared to $82.7 million for 2020. During 2020, the Company sold the entirety of its Visa Inc. Class B common shares (86,605 shares) in a cash transaction that 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 $0.3 million of realized security gains on the sale of investment securities and $0.5 million of unrealized fair value gains on the Company's equity securities during 2021 compared to $0.9 million of unrealized fair value losses on the Company's equity securities during 2020. Exclusive of these items, non-interest income increased from $65.6 million for the year ended December 31, 2020 to $68.8 million for the year ended December 31, 2021. This increase was largely attributable to an increase of $3.9 million, or 17.0%, in bankcard revenues and a $0.7 million, or 8.8%, increase in trust and investment management fee income. These increases were partially offset by a decrease of $0.7 million, or 15.0%, in other income and a decrease of $0.5 million in bank owned life insurance due to lower death benefit proceeds received during 2021 compared to 2020.

Non-interest income was $17.6 million during the quarter ended December 31, 2021 as compared to $17.7 million during the quarter ended December 31, 2020. During the fourth quarter of 2021, the Company reported $0.1 million of unrealized fair value gains on the Company's equity securities compared to $0.8 million of unrealized fair value gains on the Company's equity securities during the fourth quarter of 2020. Exclusive of these unrealized fair value gains, non-interest income increased from $16.9 million for the fourth quarter of 2020 to $17.6 million for the fourth quarter of 2021. This increase was largely attributable to higher bankcard revenues ($0.8 million, or 12.9%) and service charges ($0.3 million, or 4.2%). These increases were partially offset by a decrease in other income ($0.3 million).

Non-interest Expenses

Non-interest expenses increased from $115.3 million for 2020 to $117.2 million for 2021. This increase was primarily due to an increase in telecommunication expenses ($0.7 million), FDIC insurance expense ($0.7 million), bankcard expenses ($0.6 million), occupancy related expenses ($0.3 million), advertising expenses ($0.3 million), and equipment and software related expense ($0.3 million). These increases were partially offset by a decrease in other expenses ($0.6 million) and repossessed asset gains ($0.3 million).

Non-interest expenses remained level at $28.6 million for both the quarter ended December 31, 2020 and the quarter ended December 31, 2021. A decrease in salaries and employee benefits expense of $0.7 million was essentially offset by increases in other expenses ($0.2 million), telecommunication expense ($0.2 million), and bankcard expenses ($0.1 million).

Balance Sheet Trends

Loans decreased $78.3 million (2.2%) from December 31, 2020 to $3.54 billion at December 31, 2021. PPP loans decreased $48.9 million from $55.4 million at December 31, 2020 to $6.6 million at December 31, 2021. Excluding outstanding PPP loans (included in the commercial and industrial loan category), total loans decreased $29.4 million, (0.8%), from December 31, 2020 to $3.54 billion at December 31, 2021. Residential real estate loans decreased $38.7 million (2.4%); home equity loans decreased $14.1 million (10.4%); and consumer loans decreased $6.8 million (14.2%). These decreases were partially offset by increases in commercial and industrial loans ($22.1 million, or 7.5%) (excluding PPP loans).

Total average depository balances for the year ended December 31, 2021 increased $486.5 million, or 11.2%, as compared to the year ended December 31, 2020. Average noninterest bearing demand deposits increased $280.0 million, average savings deposits increased $219.5 million, and average interest bearing demand deposits increased $159.3 million. These increases were partially offset by a decrease in average time deposits of $172.3 million. From December 31, 2020, to December 31, 2021, total demand deposit account households increased 2.6% and total demand deposit accounts increased 2.5%.

Income Tax Expense

The Company's effective income tax rate for the quarter and year ended December 31, 2021 was 21.1% and 20.8%, respectively, compared to 17.0% and 19.5% for the comparable periods in 2020.

Capitalization and Liquidity

The Company's loan to deposit ratio was 72.0% and the loan to asset ratio was 59.0% at December 31, 2021. The Company maintained investment securities totaling 23.9% of assets as of the same date. Because interest rates remain extremely low, at December 31, 2021 the company maintained significant cash and cash equivalent assets which totaled 10.5% of assets. The Company's deposit mix is weighted toward checking and saving accounts that fund 64.2% of assets at December 31, 2021. Time deposits fund 17.8% of assets at December 31, 2021, but very few of these deposits are in accounts that have balances of more than $250,000.

The Company continues to be strongly capitalized with tangible equity of $564 million at December 31, 2021. Due to the continued influx of deposits during 2021, the Company's tangible equity ratio decreased from 10.3% at December 31, 2020 to 9.6% at December 31, 2021. At December 31, 2021, City National Bank's Leverage Ratio was 8.45%, its Common Equity Tier I ratio was 14.35%, its Tier I Capital ratio was 14.35%, and its Total Risk-Based Capital ratio was 14.78%. These regulatory capital ratios are significantly above levels required to be considered "well capitalized," which is the highest possible regulatory designation.

On November 19, 2021, the Board approved a quarterly cash dividend of $0.60 cents per share payable January 31, 2022, to shareholders of record as of January 14, 2022. This represents a 3.45% increase from the $0.58 per share dividend paid on October 29, 2021. During the year ended December 31, 2021, the Company repurchased 760,000 common shares at a weighted average price of $77.21 per share as part of a one million share repurchase plan authorized by the Board of Directors in March 2021. As of December 31, 2021, the Company could repurchase approximately 315,000 shares under the current plan.

City Holding Company is the parent company of City National Bank of West Virginia. City National Bank operates 94 branches across West Virginia, Kentucky, Virginia, and Ohio.

Forward-Looking Information

This news release contains certain forward-looking statements that are included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express only management's beliefs regarding future results or events and are subject to inherent uncertainty, risks, and changes in circumstances, many of which are outside of management's control. Uncertainty, risks, changes in circumstances and other factors could cause the Company's actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 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 credit 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 December 31, 2021 Form 10-K. The Company will continue to evaluate the impact of any subsequent events on the preliminary December 31, 2021 results and will adjust the amounts if necessary.

CITY HOLDINGCOMPANY ANDSUBSIDIARIESFinancialHighlights(Unaudited) Three Months Ended Twelve Months Ended December September June 30, March 31, December December December 31, 2021 30, 2021 2021 2021 31, 2020 31, 2021 31, 2020 EarningsNet InterestIncome (fully $ 40,956 $ 39,822 $ 38,257 $ 37,871 $ 38,514 $ 156,906 $ 155,683 taxableequivalent)Net Incomeavailable to 23,386 22,732 22,148 19,814 22,222 88,080 89,595 commonshareholders

Per Share DataEarnings pershare available tocommonshareholders:Basic $ 1.54 $ 1.47 $ 1.41 $ 1.25 $ 1.40 $ 5.67 $ 5.55

Diluted 1.54 1.47 1.41 1.25 1.40 5.66 5.55

Weightedaverage number ofshares (inthousands):Basic 15,026 15,279 15,573 15,656 15,708 15,381 15,975

Diluted 15,056 15,302 15,594 15,687 15,733 15,407 15,995

Period-endnumber of 15,062 15,192 15,527 15,724 15,768 15,062 15,768 shares (inthousands)Cash $ 0.60 $ 0.58 $ 0.58 $ 0.58 $ 0.58 $ 2.34 $ 2.29 dividendsdeclaredBook value $ 45.22 $ 44.58 $ 44.79 $ 43.99 $ 44.47 $ 45.22 $ 44.47 per share(period-end)Tangible bookvalue per 37.44 36.85 37.20 36.47 36.94 37.44 36.94 share(period-end)Market data:

High closing $ 83.14 $ 79.99 $ 83.85 $ 87.41 $ 70.77 $ 87.41 $ 82.40 priceLow closing 76.52 72.29 74.44 69.05 56.98 69.05 55.18 pricePeriod-end 81.79 77.91 75.24 81.78 69.55 81.79 69.55 closing priceAverage daily 52 53 61 63 56 57 70 volume (inthousands)Treasury shareactivity:Treasuryshares 131 337 217 75 81 760 573 repurchased(inthousands)Averagetreasury $ 78.93 $ 75.65 $ 78.75 $ 76.71 $ 60.32 $ 77.21 $ 63.68 sharerepurchaseprice Key Ratios(percent)Return on 1.56 % 1.53 % 1.49 % 1.38 % 1.59 % 1.49 % 1.66 %averageassetsReturn onaverage 16.7 % 15.7 % 15.2 % 13.5 % 15.3 % 15.3 % 15.6 %tangibleequityYield oninterest 3.08 % 3.04 % 3.00 % 3.17 % 3.32 % 3.07 % 3.64 %earningassetsCost ofinterest 0.19 % 0.22 % 0.27 % 0.37 % 0.47 % 0.26 % 0.66 %bearingliabilitiesNet Interest 2.94 % 2.89 % 2.81 % 2.91 % 2.99 % 2.89 % 3.16 %MarginNon-interestincome as a 30.2 % 31.1 % 31.0 % 30.4 % 30.7 % 30.8 % 34.8 %percent oftotal revenueEfficiency 48.3 % 50.0 % 52.8 % 54.3 % 51.0 % 51.3 % 51.3 %RatioPrice/ 13.27 13.22 13.35 16.30 12.41 14.42 12.52 EarningsRatio (a) Capital(period-end)AverageShareholders' 11.25 % 11.69 % 11.81 % 12.30 % 12.46 %Equity toAverageAssetsTangibleequity to 9.58 % 9.59 % 9.98 % 9.93 % 10.33 %tangibleassetsConsolidated City HoldingCompany risk basedcapital ratios (b):CET I 16.08 % 16.11 % 16.40 % 16.76 % 16.18 %

Tier I 16.08 % 16.11 % 16.40 % 16.76 % 16.18 %

Total 16.51 % 16.56 % 16.88 % 17.33 % 16.75 %

Leverage 9.44 % 9.46 % 9.70 % 10.06 % 10.22 %

City NationalBank riskbased capitalratios (b):CET I 14.35 % 14.76 % 14.82 % 14.75 % 14.10 %

Tier I 14.35 % 14.76 % 14.82 % 14.75 % 14.10 %

Total 14.78 % 15.21 % 15.30 % 15.33 % 14.68 %

Leverage 8.45 % 8.73 % 8.80 % 8.91 % 8.97 %

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

FTE 905 921 912 916 926

Assets per $ 6,637 $ 6,463 $ 6,477 $ 6,434 $ 6,219 FTE (inthousands)Deposits per 5,445 5,308 5,271 5,236 5,024 FTE (inthousands) (a) The price/earnings ratio is computed based on annualized quarterly earnings(excludes gain for sale of VISA shares, net of taxes).(b) December 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 EndedTwelve Months EndedDecember 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020December 31, 2021December 31, 2020Interest IncomeInterest and fees on loans$

35,277

$

33,961

$

33,114

$

34,324

$

35,685

$

136,676

$

150,498

Interest on investment securities:Taxable5,753

6,144

5,932

5,242

5,500

23,071

23,355

Tax-exempt1,226

1,257

1,291

1,253

1,254

5,027

3,914

Interest on deposits in depository institutions217

196

162

118

60

693

492

Total Interest Income42,473

41,558

40,499

40,937

42,499

165,467

178,259

Interest ExpenseInterest on deposits1,710

1,955

2,460

3,280

4,198

9,405

22,522

Interest on short-term borrowings132

115

125

117

120

489

993

Interest on long-term debt-

-

-

-

-

-

100

Total Interest Expense1,842

2,070

2,585

3,397

4,318

9,894

23,615

Net Interest Income40,631

39,488

37,914

37,540

38,181

155,573

154,644

(Recovery of) provision for credit losses-

(725

)

(2,000

)

(440

)

474

(3,165

)

10,722

Net Interest Income After (Recovery of) Provision for Credit Losses40,631

40,213

39,914

37,980

37,707

158,738

143,922

Non-Interest IncomeNet gains on sale of investment securities-

-

29

283

6

312

62

Unrealized gains (losses) recognized on equity securities still held52

93

410

(51

)

835

504

(863

)

Service charges7,057

6,706

5,895

5,881

6,771

25,539

25,733

Bankcard revenue6,762

6,791

7,221

6,213

5,991

26,987

23,059

Trust and investment management fee income2,198

2,172

2,012

2,033

2,162

8,415

7,736

Bank owned life insurance748

747

940

1,460

813

3,895

4,424

Sale of VISA shares-

-

-

-

-

-

17,837

Other income799

1,438

941

811

1,143

3,989

4,692

Total Non-Interest Income17,616

17,947

17,448

16,630

17,721

69,641

82,680

Non-Interest ExpenseSalaries and employee benefits15,299

15,321

15,559

15,671

15,989

61,850

62,074

Occupancy related expense2,429

2,507

2,525

2,622

2,447

10,083

9,765

Equipment and software related expense2,733

2,554

2,655

2,544

2,660

10,486

10,200

FDIC insurance expense400

396

382

405

363

1,583

884

Advertising582

804

824

881

538

3,091

2,776

Bankcard expenses1,576

1,549

1,746

1,584

1,443

6,455

5,893

Postage, delivery, and statement mailings590

573

568

592

546

2,323

2,268

Office supplies378

406

371

392

413

1,547

1,556

Legal and professional fees405

610

589

675

438

2,279

2,176

Telecommunications702

790

676

690

540

2,858

2,129

Repossessed asset (gains) losses, net of expenses(29

)

(108

)

1

79

(68

)

(57

)

245

Other expenses3,559

3,776

3,678

3,674

3,332

14,687

15,324

Total Non-Interest Expense28,624

29,178

29,574

29,809

28,641

117,185

115,290

Income Before Income Taxes29,623

28,982

27,788

24,801

26,787

111,194

111,312

Income tax expense6,237

6,250

5,640

4,987

4,565

23,114

21,717

Net Income Available to Common Shareholders$

23,386

$

22,732

$

22,148

$

19,814

$

22,222

$

88,080

$

89,595

Distributed earnings allocated to common shareholders$

8,949

$

8,726

$

8,921

$

9,037

$

9,053

$

34,901

$

35,745

Undistributed earnings allocated to common shareholders14,211

13,786

13,021

10,598

12,947

52,336

52,963

Net earnings allocated to common shareholders$

23,160

$

22,512

$

21,942

$

19,635

$

22,000

$

87,237

$

88,708

Average common shares outstanding15,026

15,279

15,573

15,656

15,708

15,381

15,975

Shares for diluted earnings per share15,056

15,302

15,594

15,687

15,733

15,407

15,995

Basic earnings per common share$

1.54

$

1.47

$

1.41

$

1.25

$

1.40

$

5.67

$

5.55

Diluted earnings per common share$

1.54

$

1.47

$

1.41

$

1.25

$

1.40

$

5.66

$

5.55

CITY HOLDINGCOMPANY ANDSUBSIDIARIESConsolidatedStatements ofIncome(Unaudited) ($ in000s, except pershare data) Three Months Ended Twelve Months Ended December September June 30, March 31, December December December 31, 2021 30, 2021 2021 2021 31, 2020 31, 2021 31, 2020 Interest IncomeInterest and fees $ 35,277 $ 33,961 $ 33,114 $ 34,324 $ 35,685 $ 136,676 $ 150,498 on loansInterest on investmentsecurities:Taxable 5,753 6,144 5,932 5,242 5,500 23,071 23,355

Tax-exempt 1,226 1,257 1,291 1,253 1,254 5,027 3,914

Interest ondeposits in 217 196 162 118 60 693 492 depositoryinstitutionsTotal Interest 42,473 41,558 40,499 40,937 42,499 165,467 178,259 Income

Interest Expense

Interest on 1,710 1,955 2,460 3,280 4,198 9,405 22,522 depositsInterest on 132 115 125 117 120 489 993 short-termborrowingsInterest on - - - - - - 100 long-term debtTotal Interest 1,842 2,070 2,585 3,397 4,318 9,894 23,615 ExpenseNet Interest 40,631 39,488 37,914 37,540 38,181 155,573 154,644 Income(Recovery of) - (725 ) (2,000 ) (440 ) 474 (3,165 ) 10,722 provision forcredit lossesNet InterestIncome After 40,631 40,213 39,914 37,980 37,707 158,738 143,922 (Recovery of)Provision forCredit Losses

Non-Interest IncomeNet gains on sale - - 29 283 6 312 62 of investmentsecuritiesUnrealized gains(losses) 52 93 410 (51 ) 835 504 (863 )recognized onequity securitiesstill heldService charges 7,057 6,706 5,895 5,881 6,771 25,539 25,733

Bankcard revenue 6,762 6,791 7,221 6,213 5,991 26,987 23,059

Trust andinvestment 2,198 2,172 2,012 2,033 2,162 8,415 7,736 management feeincomeBank owned life 748 747 940 1,460 813 3,895 4,424 insuranceSale of VISA - - - - - - 17,837 sharesOther income 799 1,438 941 811 1,143 3,989 4,692

Total Non-Interest 17,616 17,947 17,448 16,630 17,721 69,641 82,680 Income

Non-Interest ExpenseSalaries and 15,299 15,321 15,559 15,671 15,989 61,850 62,074 employee benefitsOccupancy related 2,429 2,507 2,525 2,622 2,447 10,083 9,765 expenseEquipment and 2,733 2,554 2,655 2,544 2,660 10,486 10,200 software relatedexpenseFDIC insurance 400 396 382 405 363 1,583 884 expenseAdvertising 582 804 824 881 538 3,091 2,776

Bankcard expenses 1,576 1,549 1,746 1,584 1,443 6,455 5,893

Postage, delivery, 590 573 568 592 546 2,323 2,268 and statementmailingsOffice supplies 378 406 371 392 413 1,547 1,556

Legal and 405 610 589 675 438 2,279 2,176 professional feesTelecommunications 702 790 676 690 540 2,858 2,129

Repossessed asset (29 ) (108 ) 1 79 (68 ) (57 ) 245 (gains) losses,net of expensesOther expenses 3,559 3,776 3,678 3,674 3,332 14,687 15,324

Total Non-Interest 28,624 29,178 29,574 29,809 28,641 117,185 115,290 ExpenseIncome Before 29,623 28,982 27,788 24,801 26,787 111,194 111,312 Income TaxesIncome tax expense 6,237 6,250 5,640 4,987 4,565 23,114 21,717

Net IncomeAvailable to $ 23,386 $ 22,732 $ 22,148 $ 19,814 $ 22,222 $ 88,080 $ 89,595 CommonShareholders

Distributedearnings allocated $ 8,949 $ 8,726 $ 8,921 $ 9,037 $ 9,053 $ 34,901 $ 35,745 to commonshareholdersUndistributedearnings allocated 14,211 13,786 13,021 10,598 12,947 52,336 52,963 to commonshareholdersNet earningsallocated to $ 23,160 $ 22,512 $ 21,942 $ 19,635 $ 22,000 $ 87,237 $ 88,708 commonshareholders

Average common 15,026 15,279 15,573 15,656 15,708 15,381 15,975 shares outstandingShares for diluted 15,056 15,302 15,594 15,687 15,733 15,407 15,995 earnings per share

Basic earnings per $ 1.54 $ 1.47 $ 1.41 $ 1.25 $ 1.40 $ 5.67 $ 5.55 common shareDiluted earnings $ 1.54 $ 1.47 $ 1.41 $ 1.25 $ 1.40 $ 5.66 $ 5.55 per common shareCITY HOLDING COMPANY AND SUBSIDIARIESConsolidated Balance Sheets($ in 000s)(Unaudited)(Unaudited)(Unaudited)(Unaudited)December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020AssetsCash and due from banks$

101,804

$

103,841

$

97,523

$

97,709

$

77,412

Interest-bearing deposits in depository institutions532,827

535,708

512,367

659,090

451,247

Cash and cash equivalents634,631

639,549

609,890

756,799

528,659

Investment securities available-for-sale, at fair value1,408,165

1,372,077

1,339,436

1,183,253

1,176,797

Other securities25,531

25,497

25,793

29,174

29,364

Total investment securities1,433,696

1,397,574

1,365,229

1,212,427

1,206,161

Gross loans3,543,814

3,521,925

3,529,416

3,546,723

3,622,119

Allowance for credit losses(18,166

)

(18,751

)

(20,016

)

(24,076

)

(24,549

)

Net loans3,525,648

3,503,174

3,509,400

3,522,647

3,597,570

Bank owned life insurance120,978

120,238

119,491

118,976

118,243

Premises and equipment, net74,071

75,156

76,263

76,529

76,925

Accrued interest receivable15,627

16,224

15,967

16,231

15,793

Net deferred tax assets63

90

-

1,395

-

Intangible assets117,121

117,489

117,857

118,224

118,592

Other assets81,860

82,419

89,958

71,142

96,697

Total Assets$

6,003,695

$

5,951,913

$

5,904,055

$

5,894,370

$

5,758,640

LiabilitiesDeposits:Noninterest-bearing$

1,373,125

$

1,311,464

$

1,279,932

$

1,244,175

$

1,176,990

Interest-bearing:Demand deposits1,135,848

1,139,033

1,070,004

1,077,749

1,027,201

Savings deposits1,347,448

1,332,910

1,301,219

1,265,038

1,188,003

Time deposits1,068,915

1,104,069

1,153,391

1,209,873

1,260,022

Total deposits4,925,336

4,887,476

4,804,546

4,796,835

4,652,216

Short-term borrowingsCustomer repurchase agreements312,458

296,642

311,316

316,003

295,956

Net deferred tax liabilities-

-

2,310

-

3,202

Other liabilities84,796

90,499

90,407

89,847

106,160

Total Liabilities5,322,590

5,274,617

5,208,579

5,202,685

5,057,534

Stockholders' EquityPreferred stock-

-

-

-

-

Common stock47,619

47,619

47,619

47,619

47,619

Capital surplus170,942

170,300

169,674

170,526

171,304

Retained earnings641,826

627,463

613,553

600,396

589,988

Cost of common stock in treasury(193,542

)

(183,303

)

(157,936

)

(142,484

)

(139,038

)

Accumulated other comprehensive income:Unrealized gain on securities available-for-sale17,745

20,878

28,227

21,289

36,894

Underfunded pension liability(3,485

)

(5,661

)

(5,661

)

(5,661

)

(5,661

)

Total Accumulated Other Comprehensive Income14,260

15,217

22,566

15,628

31,233

Total Stockholders' Equity681,105

677,296

695,476

691,685

701,106

Total Liabilities and Stockholders' Equity$

6,003,695

$

5,951,913

$

5,904,055

$

5,894,370

$

5,758,640

Regulatory CapitalTotal CET 1 capital$

555,532

$

550,426

$

561,317

$

563,523

$

557,641

Total tier 1 capital555,532

550,426

561,317

563,523

557,641

Total risk-based capital570,336

565,712

577,543

582,816

577,292

Total risk-weighted assets3,453,893

3,417,020

3,421,764

3,362,595

3,446,774

CITY HOLDING COMPANYAND SUBSIDIARIESConsolidated BalanceSheets($ in 000s) (Unaudited) (Unaudited) (Unaudited) (Unaudited) December 31, September 30, June 30, 2021 March 31, December 31, 2021 2021 2021 2020 AssetsCash and due from $ 101,804 $ 103,841 $ 97,523 $ 97,709 $ 77,412 banksInterest-bearingdeposits in 532,827 535,708 512,367 659,090 451,247 depositoryinstitutionsCash and cash 634,631 639,549 609,890 756,799 528,659 equivalents Investmentsecurities 1,408,165 1,372,077 1,339,436 1,183,253 1,176,797 available-for-sale,at fair valueOther securities 25,531 25,497 25,793 29,174 29,364

Total investment 1,433,696 1,397,574 1,365,229 1,212,427 1,206,161 securities Gross loans 3,543,814 3,521,925 3,529,416 3,546,723 3,622,119

Allowance for credit (18,166 ) (18,751 ) (20,016 ) (24,076 ) (24,549 )lossesNet loans 3,525,648 3,503,174 3,509,400 3,522,647 3,597,570

Bank owned life 120,978 120,238 119,491 118,976 118,243 insurancePremises and 74,071 75,156 76,263 76,529 76,925 equipment, netAccrued interest 15,627 16,224 15,967 16,231 15,793 receivableNet deferred tax 63 90 - 1,395 - assetsIntangible assets 117,121 117,489 117,857 118,224 118,592

Other assets 81,860 82,419 89,958 71,142 96,697

Total Assets $ 6,003,695 $ 5,951,913 $ 5,904,055 $ 5,894,370 $ 5,758,640

LiabilitiesDeposits:Noninterest-bearing $ 1,373,125 $ 1,311,464 $ 1,279,932 $ 1,244,175 $ 1,176,990

Interest-bearing:Demand deposits 1,135,848 1,139,033 1,070,004 1,077,749 1,027,201

Savings deposits 1,347,448 1,332,910 1,301,219 1,265,038 1,188,003

Time deposits 1,068,915 1,104,069 1,153,391 1,209,873 1,260,022

Total deposits 4,925,336 4,887,476 4,804,546 4,796,835 4,652,216

Short-termborrowingsCustomer repurchase 312,458 296,642 311,316 316,003 295,956 agreementsNet deferred tax - - 2,310 - 3,202 liabilitiesOther liabilities 84,796 90,499 90,407 89,847 106,160

Total Liabilities 5,322,590 5,274,617 5,208,579 5,202,685 5,057,534

Stockholders' EquityPreferred stock - - - - -

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

Capital surplus 170,942 170,300 169,674 170,526 171,304

Retained earnings 641,826 627,463 613,553 600,396 589,988

Cost of common stock (193,542 ) (183,303 ) (157,936 ) (142,484 ) (139,038 )in treasuryAccumulated othercomprehensiveincome:Unrealized gain on 17,745 20,878 28,227 21,289 36,894 securitiesavailable-for-saleUnderfunded pension (3,485 ) (5,661 ) (5,661 ) (5,661 ) (5,661 )liabilityTotal Accumulated 14,260 15,217 22,566 15,628 31,233 Other ComprehensiveIncomeTotal Stockholders' 681,105 677,296 695,476 691,685 701,106 EquityTotal Liabilities $ 6,003,695 $ 5,951,913 $ 5,904,055 $ 5,894,370 $ 5,758,640 and Stockholders'Equity Regulatory CapitalTotal CET 1 capital $ 555,532 $ 550,426 $ 561,317 $ 563,523 $ 557,641

Total tier 1 capital 555,532 550,426 561,317 563,523 557,641

Total risk-based 570,336 565,712 577,543 582,816 577,292 capitalTotal risk-weighted 3,453,893 3,417,020 3,421,764 3,362,595 3,446,774 assetsCITY HOLDING COMPANY AND SUBSIDIARIESLoan Portfolio(Unaudited) ($ in 000s)December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020Commercial and industrial$

346,184

$

353,046

$

358,583

$

371,195

$

372,989

1-4 Family107,873

108,913

108,079

108,131

109,812

Hotels311,315

297,341

290,119

293,176

294,464

Multi-family215,677

215,307

212,715

212,561

215,671

Non Residential Non-Owner Occupied639,818

664,365

653,264

649,683

641,351

Non Residential Owner Occupied204,233

205,579

209,100

199,130

213,484

Commercial real estate (1)1,478,916

1,491,505

1,473,277

1,462,681

1,474,782

Residential real estate (2)1,548,965

1,506,572

1,521,102

1,532,907

1,587,694

Home equity122,345

124,806

127,608

130,009

136,469

Consumer40,901

43,296

45,184

47,224

47,688

DDA overdrafts6,503

2,700

3,662

2,707

2,497

Gross Loans$

3,543,814

$

3,521,925

$

3,529,416

$

3,546,723

$

3,622,119

Construction loans included in:(1) - Commercial real estate loans$

11,783

$

19,360

$

43,904

$

39,101

$

40,449

(2) - Residential real estate loans17,252

19,059

20,838

22,129

27,078

CITY HOLDINGCOMPANY ANDSUBSIDIARIESLoan Portfolio(Unaudited) ($in 000s) December September June 30, March 31, December 31, 2021 30, 2021 2021 2021 31, 2020 Commercial and $ 346,184 $ 353,046 $ 358,583 $ 371,195 $ 372,989industrial 1-4 Family 107,873 108,913 108,079 108,131 109,812

Hotels 311,315 297,341 290,119 293,176 294,464

Multi-family 215,677 215,307 212,715 212,561 215,671

NonResidential 639,818 664,365 653,264 649,683 641,351Non-OwnerOccupiedNon 204,233 205,579 209,100 199,130 213,484ResidentialOwner OccupiedCommercial 1,478,916 1,491,505 1,473,277 1,462,681 1,474,782real estate ^(1) Residential 1,548,965 1,506,572 1,521,102 1,532,907 1,587,694real estate ^(2)Home equity 122,345 124,806 127,608 130,009 136,469

Consumer 40,901 43,296 45,184 47,224 47,688

DDA overdrafts 6,503 2,700 3,662 2,707 2,497

Gross Loans $ 3,543,814 $ 3,521,925 $ 3,529,416 $ 3,546,723 $ 3,622,119

Constructionloans includedin:^(1) -Commercial $ 11,783 $ 19,360 $ 43,904 $ 39,101 $ 40,449real estateloans^(2) -Residential 17,252 19,059 20,838 22,129 27,078real estateloansCITY HOLDING COMPANY AND SUBSIDIARIESAsset Quality Information(Unaudited) ($ in 000s)Three Months EndedTwelve Months EndedDecember 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020December 31, 2021December 31, 2020Allowance for Credit LossesBalance at beginning of period$

18,751

$

20,016

$

24,076

$

24,549

$

24,867

$

24,549

$

11,589

Charge-offs:Commercial and industrial-

-

(211

)

(34

)

(9

)

(245

)

(843

)

Commercial real estate(276

)

(392

)

(1,718

)

(1

)

(616

)

(2,387

)

(1,113

)

Residential real estate(68

)

(18

)

(86

)

(93

)

(139

)

(265

)

(1,250

)

Home equity(58

)

(47

)

(8

)

(64

)

(88

)

(177

)

(420

)

Consumer(13

)

(3

)

(79

)

(147

)

(27

)

(242

)

(192

)

DDA overdrafts(635

)

(633

)

(430

)

(453

)

(629

)

(2,151

)

(2,345

)

Total charge-offs(1,050

)

(1,093

)

(2,532

)

(792

)

(1,508

)

(5,467

)

(6,163

)

Recoveries:Commercial and industrial31

69

25

46

74

171

91

Commercial real estate27

18

15

164

150

224

525

Residential real estate7

29

17

74

57

127

184

Home equity6

58

3

23

47

90

136

Consumer40

72

104

39

55

255

238

DDA overdrafts354

307

308

413

333

1,382

1,467

Total recoveries465

553

472

759

716

2,249

2,641

Net charge-offs(585

)

(540

)

(2,060

)

(33

)

(792

)

(3,218

)

(3,522

)

(Recovery of) provision for credit losses-

(725

)

(2,000

)

(440

)

474

(3,165

)

10,722

Impact of Adopting ASC 326-

-

-

-

-

-

5,760

Balance at end of period$

18,166

$

18,751

$

20,016

$

24,076

$

24,549

$

18,166

$

24,549

Loans outstanding$

3,543,814

$

3,521,925

$

3,529,416

$

3,546,723

$

3,622,119

Allowance as a percent of loans outstanding0.51

%

0.53

%

0.57

%

0.68

%

0.68

%

Allowance as a percent of non-performing loans290.1

%

243.1

%

199.3

%

194.5

%

200.7

%

Average loans outstanding$

3,522,272

$

3,535,497

$

3,541,165

$

3,585,790

$

3,635,673

$

3,545,978

$

3,641,610

Net charge-offs (annualized) as a percent of average loans outstanding0.07

%

0.06

%

0.23

%

0.00

%

0.09

%

0.09

%

0.10

%

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

2,809

$

3,634

$

2,482

$

3,004

$

2,968

Home equity40

67

81

88

95

Commercial and industrial996

531

820

1,200

768

Commercial real estate2,373

3,355

6,383

7,792

8,401

Consumer-

-

-

-

-

Total nonaccrual loans6,218

7,587

9,766

12,084

12,232

Accruing loans past due 90 days or more43

127

278

295

-

Total non-performing loans6,261

7,714

10,044

12,379

12,232

Other real estate owned1,319

1,335

1,309

1,625

1,650

Total non-performing assets$

7,580

$

9,049

$

11,353

$

14,004

$

13,882

Non-performing assets as a percent of loans and other real estate owned0.21

%

0.26

%

0.32

%

0.39

%

0.38

%

Past Due LoansResidential real estate$

5,321

$

5,258

$

5,453

$

4,092

$

5,993

Home equity618

688

523

449

575

Commercial and industrial336

455

721

1,358

1,241

Commercial real estate22

441

498

508

625

Consumer60

35

12

10

113

DDA overdrafts489

390

417

212

341

Total past due loans$

6,846

$

7,267

$

7,624

$

6,629

$

8,888

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

%

0.21

%

0.22

%

0.19

%

0.25

%

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

16,943

$

16,910

$

17,788

$

18,572

$

19,226

Home equity1,784

1,822

1,920

1,956

2,001

Commercial and industrial414

430

-

-

-

Commercial real estate1,914

1,937

3,076

4,615

4,638

Consumer225

221

203

211

277

Total TDRs$

21,280

$

21,320

$

22,987

$

25,354

$

26,142

CITY HOLDINGCOMPANY ANDSUBSIDIARIESAsset QualityInformation(Unaudited) ($in 000s) Three Months Ended Twelve Months Ended December 31, September 30, June 30, 2021 March 31, December 31, December 31, December 31, 2021 2021 2021 2020 2021 2020Allowance forCredit LossesBalance at $ 18,751 $ 20,016 $ 24,076 $ 24,549 $ 24,867 $ 24,549 $ 11,589 beginning ofperiod Charge-offs:Commercial and - - (211 ) (34 ) (9 ) (245 ) (843 )industrialCommercial real (276 ) (392 ) (1,718 ) (1 ) (616 ) (2,387 ) (1,113 )estateResidential (68 ) (18 ) (86 ) (93 ) (139 ) (265 ) (1,250 )real estateHome equity (58 ) (47 ) (8 ) (64 ) (88 ) (177 ) (420 )

Consumer (13 ) (3 ) (79 ) (147 ) (27 ) (242 ) (192 )

DDA overdrafts (635 ) (633 ) (430 ) (453 ) (629 ) (2,151 ) (2,345 )

Total (1,050 ) (1,093 ) (2,532 ) (792 ) (1,508 ) (5,467 ) (6,163 )charge-offs Recoveries:Commercial and 31 69 25 46 74 171 91 industrialCommercial real 27 18 15 164 150 224 525 estateResidential 7 29 17 74 57 127 184 real estateHome equity 6 58 3 23 47 90 136

Consumer 40 72 104 39 55 255 238

DDA overdrafts 354 307 308 413 333 1,382 1,467

Total 465 553 472 759 716 2,249 2,641 recoveries Net charge-offs (585 ) (540 ) (2,060 ) (33 ) (792 ) (3,218 ) (3,522 )

(Recovery of) - (725 ) (2,000 ) (440 ) 474 (3,165 ) 10,722 provision forcredit lossesImpact of - - - - - - 5,760 Adopting ASC326Balance at end $ 18,166 $ 18,751 $ 20,016 $ 24,076 $ 24,549 $ 18,166 $ 24,549 of period Loans $ 3,543,814 $ 3,521,925 $ 3,529,416 $ 3,546,723 $ 3,622,119 outstandingAllowance as apercent of 0.51 % 0.53 % 0.57 % 0.68 % 0.68 %loansoutstandingAllowance as apercent of 290.1 % 243.1 % 199.3 % 194.5 % 200.7 %non-performingloans Average loans $ 3,522,272 $ 3,535,497 $ 3,541,165 $ 3,585,790 $ 3,635,673 $ 3,545,978 $ 3,641,610 outstandingNet charge-offs(annualized) as 0.07 % 0.06 % 0.23 % 0.00 % 0.09 % 0.09 % 0.10 %a percent ofaverage loansoutstandingCITY HOLDINGCOMPANY ANDSUBSIDIARIESAsset QualityInformation,continued(Unaudited) ($in 000s) December 31, September 30, June 30, 2021 March 31, December 31, 2021 2021 2021 2020NonaccrualLoansResidential $ 2,809 $ 3,634 $ 2,482 $ 3,004 $ 2,968 real estateHome equity 40 67 81 88 95

Commercial and 996 531 820 1,200 768 industrialCommercial real 2,373 3,355 6,383 7,792 8,401 estateConsumer - - - - -

Total 6,218 7,587 9,766 12,084 12,232 nonaccrualloansAccruing loans 43 127 278 295 - past due 90days or moreTotal 6,261 7,714 10,044 12,379 12,232 non-performingloansOther real 1,319 1,335 1,309 1,625 1,650 estate ownedTotal $ 7,580 $ 9,049 $ 11,353 $ 14,004 $ 13,882 non-performingassets Non-performingassets as apercent of 0.21 % 0.26 % 0.32 % 0.39 % 0.38 %loans and otherreal estateowned Past Due LoansResidential $ 5,321 $ 5,258 $ 5,453 $ 4,092 $ 5,993 real estateHome equity 618 688 523 449 575

Commercial and 336 455 721 1,358 1,241 industrialCommercial real 22 441 498 508 625 estateConsumer 60 35 12 10 113

DDA overdrafts 489 390 417 212 341

Total past due $ 6,846 $ 7,267 $ 7,624 $ 6,629 $ 8,888 loans Total past dueloans as a 0.19 % 0.21 % 0.22 % 0.19 % 0.25 %percent ofloansoutstanding Troubled DebtRestructurings("TDRs")Residential $ 16,943 $ 16,910 $ 17,788 $ 18,572 $ 19,226 real estateHome equity 1,784 1,822 1,920 1,956 2,001

Commercial and 414 430 - - - industrialCommercial real 1,914 1,937 3,076 4,615 4,638 estateConsumer 225 221 203 211 277

Total TDRs $ 21,280 $ 21,320 $ 22,987 $ 25,354 $ 26,142

CITY HOLDING COMPANY AND SUBSIDIARIESConsolidated Average Balance Sheets, Yields, and Rates(Unaudited) ($ in 000s)Three Months EndedDecember 31, 2021September 30, 2021December 31, 2020AverageYield/AverageYield/AverageYield/BalanceInterestRateBalanceInterestRateBalanceInterestRateAssets:Loan portfolio (1):Residential real estate (2)$

1,645,167

$

15,692

3.78

%

$

1,648,921

$

15,813

3.80

%

$

1,744,952

$

17,623

4.02

%

Commercial, financial, and agriculture (2)1,831,461

18,740

4.06

%

1,836,604

17,344

3.75

%

1,837,044

17,077

3.70

%

Installment loans to individuals (2), (3)45,644

691

6.01

%

49,972

714

5.67

%

53,677

800

5.93

%

Previously securitized loans (4)***154

******91

******184

***Total loans3,522,272

35,277

3.97

%

3,535,497

33,962

3.81

%

3,635,673

35,684

3.90

%

Securities:Taxable1,171,340

5,753

1.95

%

1,136,519

6,144

2.14

%

976,897

5,500

2.24

%

Tax-exempt (5)239,096

1,551

2.57

%

245,551

1,590

2.57

%

238,198

1,587

2.65

%

Total securities1,410,436

7,304

2.05

%

1,382,070

7,734

2.22

%

1,215,095

7,087

2.32

%

Deposits in depository institutions588,678

217

0.15

%

544,843

196

0.14

%

275,106

60

0.09

%

Total interest-earning assets5,521,386

42,798

3.08

%

5,462,410

41,892

3.04

%

5,125,874

42,831

3.32

%

Cash and due from banks98,111

101,058

73,900

Premises and equipment, net74,847

75,956

76,956

Goodwill and intangible assets117,349

117,719

118,855

Other assets216,780

220,420

231,309

Less: Allowance for credit losses(18,756

)

(20,407

)

(25,112

)

Total assets$

6,009,717

$

5,957,156

$

5,601,782

Liabilities:Interest-bearing demand deposits$

1,113,693

$

131

0.05

%

$

1,093,243

$

127

0.05

%

$

953,604

$

171

0.07

%

Savings deposits1,338,747

173

0.05

%

1,315,462

169

0.05

%

1,148,717

225

0.08

%

Time deposits (2)1,087,280

1,406

0.51

%

1,126,553

1,659

0.58

%

1,278,698

3,801

1.18

%

Short-term borrowings314,937

132

0.17

%

282,722

115

0.16

%

287,059

120

0.17

%

Total interest-bearing liabilities3,854,657

1,842

0.19

%

3,817,980

2,070

0.22

%

3,668,078

4,317

0.47

%

Noninterest-bearing demand deposits1,394,599

1,356,745

1,130,084

Other liabilities84,071

86,263

105,445

Stockholders' equity676,390

696,168

698,175

Total liabilities andstockholders' equity$

6,009,717

$

5,957,156

$

5,601,782

Net interest income$

40,956

$

39,822

$

38,514

Net yield on earning assets2.94

%

2.89

%

2.99

%

(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$

1,106

$

1,120

$

962

(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$

149

$

154

$

153

Commercial, financial, and agriculture243

265

304

Installment loans to individuals15

21

29

Time deposits48

48

155

$

455

$

488

$

641

(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 $0.(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.CITY HOLDING COMPANYAND SUBSIDIARIESConsolidated AverageBalance Sheets, Yields,and Rates(Unaudited) ($ in 000s) Three Months Ended December 31, 2021 September 30, 2021 December 31, 2020 Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets:Loan portfolio ^(1):Residential real estate $ 1,645,167 $ 15,692 3.78 % $ 1,648,921 $ 15,813 3.80 % $ 1,744,952 $ 17,623 4.02 %^(2)Commercial, financial, 1,831,461 18,740 4.06 % 1,836,604 17,344 3.75 % 1,837,044 17,077 3.70 %and agriculture ^(2)Installment loans to 45,644 691 6.01 % 49,972 714 5.67 % 53,677 800 5.93 %individuals ^(2), (3)Previously securitized *** 154 *** *** 91 *** *** 184 ***loans ^(4)Total loans 3,522,272 35,277 3.97 % 3,535,497 33,962 3.81 % 3,635,673 35,684 3.90 %

Securities:Taxable 1,171,340 5,753 1.95 % 1,136,519 6,144 2.14 % 976,897 5,500 2.24 %

Tax-exempt ^(5) 239,096 1,551 2.57 % 245,551 1,590 2.57 % 238,198 1,587 2.65 %

Total securities 1,410,436 7,304 2.05 % 1,382,070 7,734 2.22 % 1,215,095 7,087 2.32 %

Deposits in depository 588,678 217 0.15 % 544,843 196 0.14 % 275,106 60 0.09 %institutionsTotal interest-earning 5,521,386 42,798 3.08 % 5,462,410 41,892 3.04 % 5,125,874 42,831 3.32 %assetsCash and due from banks 98,111 101,058 73,900

Premises and equipment, 74,847 75,956 76,956 netGoodwill and intangible 117,349 117,719 118,855 assetsOther assets 216,780 220,420 231,309

Less: Allowance for (18,756 ) (20,407 ) (25,112 )credit lossesTotal assets $ 6,009,717 $ 5,957,156 $ 5,601,782

Liabilities:Interest-bearing demand $ 1,113,693 $ 131 0.05 % $ 1,093,243 $ 127 0.05 % $ 953,604 $ 171 0.07 %depositsSavings deposits 1,338,747 173 0.05 % 1,315,462 169 0.05 % 1,148,717 225 0.08 %

Time deposits ^(2) 1,087,280 1,406 0.51 % 1,126,553 1,659 0.58 % 1,278,698 3,801 1.18 %

Short-term borrowings 314,937 132 0.17 % 282,722 115 0.16 % 287,059 120 0.17 %

Total interest-bearing 3,854,657 1,842 0.19 % 3,817,980 2,070 0.22 % 3,668,078 4,317 0.47 %liabilitiesNoninterest-bearing 1,394,599 1,356,745 1,130,084 demand depositsOther liabilities 84,071 86,263 105,445

Stockholders' equity 676,390 696,168 698,175

Total liabilities andstockholders' equity $ 6,009,717 $ 5,957,156 $ 5,601,782

Net interest income $ 40,956 $ 39,822 $ 38,514

Net yield on earning 2.94 % 2.89 % 2.99 %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 $ 1,106 $ 1,120 $ 962

(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 estate $ 149 $ 154 $ 153

Commercial, financial, 243 265 304and agricultureInstallment loans to 15 21 29individualsTime deposits 48 48 155

$ 455 $ 488 $ 641

(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 $0.(5) Computed on a fully federal tax-equivalent basis assuming a tax rate ofapproximately 21%.CITY HOLDING COMPANY AND SUBSIDIARIESConsolidated Average Balance Sheets, Yields, and Rates(Unaudited) ($ in 000s)Twelve Months EndedDecember 31, 2021December 31, 2020AverageYield/AverageYield/BalanceInterestRateBalanceInterestRateAssets:Loan portfolio (1):Residential real estate (2)$

1,658,710

$

64,492

3.89

%

$

1,768,789

$

74,452

4.21

%

Commercial, financial, and agriculture (2)1,838,560

68,784

3.74

%

1,816,658

72,128

3.97

%

Installment loans to individuals (2), (3)48,708

2,831

5.81

%

56,163

3,319

5.91

%

Previously securitized loans (4)***568

******599

***Total loans3,545,978

136,675

3.85

%

3,641,610

150,498

4.13

%

Securities:Taxable1,075,550

23,071

2.15

%

890,771

23,355

2.62

%

Tax-exempt (5)242,125

6,362

2.63

%

164,740

4,954

3.01

%

Total securities1,317,675

29,433

2.23

%

1,055,511

28,309

2.68

%

Deposits in depository institutions568,928

693

0.12

%

230,043

492

0.21

%

Total interest-earning assets5,432,581

166,801

3.07

%

4,927,164

179,299

3.64

%

Cash and due from banks92,847

76,173

Premises and equipment, net76,069

77,670

Goodwill and intangible assets117,899

119,471

Other assets216,493

221,864

Less: Allowance for credit losses(21,922

)

(22,770

)

Total assets$

5,913,967

$

5,399,572

Liabilities:Interest-bearing demand deposits$

1,071,628

$

504

0.05

%

$

912,306

$

1,005

0.11

%

Savings deposits1,291,225

689

0.05

%

1,071,727

1,591

0.15

%

Time deposits (2)1,157,502

8,213

0.71

%

1,329,841

19,927

1.50

%

Short-term borrowings298,413

489

0.16

%

253,456

993

0.39

%

Long-term debt-

-

-

830

100

12.05

%

Total interest-bearing liabilities3,818,768

9,895

0.26

%

3,568,160

23,616

0.66

%

Noninterest-bearing demand deposits1,315,801

1,035,801

Other liabilities84,377

100,166

Stockholders' equity695,021

695,445

Total liabilities andstockholders' equity$

5,913,967

$

5,399,572

Net interest income$

156,906

$

155,683

Net yield on earning assets2.89

%

3.16

%

(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$

3,550

$

1,842

(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$

620

$

630

Commercial, financial, and agriculture1,198

2,445

Installment loans to individuals87

143

Time deposits193

622

$

2,098

$

3,840

(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 $0.(5) Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21%.CITY HOLDINGCOMPANY ANDSUBSIDIARIESConsolidatedAverage BalanceSheets, Yields, andRates(Unaudited) ($ in000s) Twelve Months Ended December 31, 2021 December 31, 2020 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Assets:Loan portfolio ^(1):Residential real $ 1,658,710 $ 64,492 3.89 % $ 1,768,789 $ 74,452 4.21 %estate ^(2)Commercial, 1,838,560 68,784 3.74 % 1,816,658 72,128 3.97 %financial, andagriculture ^(2)Installment loans 48,708 2,831 5.81 % 56,163 3,319 5.91 %to individuals ^(2), (3)Previously 568 599securitized loans ^ *** *** *** ***(4)Total loans 3,545,978 136,675 3.85 % 3,641,610 150,498 4.13 %

Securities:Taxable 1,075,550 23,071 2.15 % 890,771 23,355 2.62 %

Tax-exempt ^(5) 242,125 6,362 2.63 % 164,740 4,954 3.01 %

Total securities 1,317,675 29,433 2.23 % 1,055,511 28,309 2.68 %

Deposits in 568,928 693 0.12 % 230,043 492 0.21 %depositoryinstitutionsTotal 5,432,581 166,801 3.07 % 4,927,164 179,299 3.64 %interest-earningassetsCash and due from 92,847 76,173 banksPremises and 76,069 77,670 equipment, netGoodwill and 117,899 119,471 intangible assetsOther assets 216,493 221,864

Less: Allowance for (21,922 ) (22,770 )credit lossesTotal assets $ 5,913,967 $ 5,399,572

Liabilities:Interest-bearing $ 1,071,628 $ 504 0.05 % $ 912,306 $ 1,005 0.11 %demand depositsSavings deposits 1,291,225 689 0.05 % 1,071,727 1,591 0.15 %

Time deposits ^(2) 1,157,502 8,213 0.71 % 1,329,841 19,927 1.50 %

Short-term 298,413 489 0.16 % 253,456 993 0.39 %borrowingsLong-term debt - - - 830 100 12.05 %

Total 3,818,768 9,895 0.26 % 3,568,160 23,616 0.66 %interest-bearingliabilitiesNoninterest-bearing 1,315,801 1,035,801 demand depositsOther liabilities 84,377 100,166

Stockholders' 695,021 695,445 equityTotal liabilitiesandstockholders' $ 5,913,967 $ 5,399,572 equityNet interest income $ 156,906 $ 155,683

Net yield on 2.89 % 3.16 %earning 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 $ 3,550 $ 1,842

(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 $ 620 $ 630estateCommercial, 1,198 2,445financial, andagricultureInstallment loans 87 143to individualsTime deposits 193 622

$ 2,098 $ 3,840

(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 EndedTwelve Months EndedDecember 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020December 31, 2021December 31, 2020Net Interest Income/MarginNet interest income ("GAAP")$

40,631

$

39,488

$

37,914

$

37,540

$

38,181

$

155,573

$

154,644

Taxable equivalent adjustment325

334

343

331

333

1,333

1,039

Net interest income, fully taxable equivalent$

40,956

$

39,822

$

38,257

$

37,871

$

38,514

$

156,906

$

155,683

Average interest earning assets$

5,521,386

$

5,462,410

$

5,459,564

$

5,284,025

$

5,125,874

$

5,432,581

$

4,927,164

Net Interest Margin2.94

%

2.89

%

2.81

%

2.91

%

2.99

%

2.89

%

3.16

%

Accretion related to fair value adjustments-0.03

%

-0.04

%

-0.05

%

-0.04

%

-0.05

%

-0.04

%

-0.08

%

Net Interest Margin (excluding accretion)2.91

%

2.85

%

2.76

%

2.87

%

2.94

%

2.85

%

3.08

%

Tangible Equity Ratio (period end)Equity to assets ("GAAP")11.34

%

11.37

%

11.78

%

11.74

%

12.18

%

Effect of goodwill and other intangibles, net-1.76

%

-1.78

%

-1.80

%

-1.81

%

-1.85

%

Tangible common equity to tangible assets9.58

%

9.59

%

9.98

%

9.93

%

10.33

%

Return on Tangible EquityReturn on tangible equity ("GAAP")16.7

%

15.7

%

15.2

%

13.5

%

15.3

%

15.3

%

15.6

%

Impact of sale of VISA shares-

-

-

-

-

-

-2.4

%

Return on tangible equity, excluding sale of VISA shares16.7

%

15.7

%

15.2

%

13.5

%

15.3

%

15.3

%

13.2

%

Return on AssetsReturn on assets ("GAAP")1.56

%

1.53

%

1.49

%

1.38

%

1.59

%

1.49

%

1.66

%

Impact of sale of VISA shares-

-

-

-

-

-

-0.24

%

Return on assets, excluding sale of VISA shares1.56

%

1.53

%

1.49

%

1.38

%

1.59

%

1.49

%

1.41

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005036/en/

CONTACT: David L. Bumgarner, Executive Vice President and Chief Financial Officer (304) 769-1169