City Holding Company (CHCO) has reported its financial results for the first quarter of 2025, showing a net income of $30.3 million and diluted earnings of $2.06 per share. The company's return on assets for the quarter stood at 1.89% and the return on tangible equity was 20.7%.
Net interest income increased by approximately $0.2 million, or 0.4%, from the fourth quarter of 2024 to the first quarter of 2025. The company's tax equivalent net interest income also rose by approximately $0.2 million, or 0.4%, during the same period. The reported net interest margin improved from 3.75% for the fourth quarter of 2024 to 3.84% for the first quarter of 2025.
The company's ratio of nonperforming assets to total loans and other real estate owned increased from 0.35% at the end of December 2024 to 0.38% at the end of March 2025. However, total past due loans decreased from $8.8 million at the end of December 2024 to $7.5 million at the end of March 2025. Notably, the company did not record a provision for credit losses in the first quarter of 2025, compared to a recovery of credit losses of $0.2 million for the same period in 2024, and a provision for credit losses of $0.3 million for the fourth quarter of 2024.
Non-interest income for the first quarter of 2025 was $18.7 million, compared to $17.9 million for the same period in 2024. Excluding unrealized fair value gains on the company's equity securities, non-interest income increased by $0.6 million, or 3.5%, from the first quarter of 2024 to the first quarter of 2025.
Non-interest expenses increased by $1.7 million, or 4.8%, from the first quarter of 2024 to the first quarter of 2025. This increase was largely due to higher equipment and software-related expenses, other expenses, salaries and employee benefits, other tax-related matters, and bankcard expenses.
On the balance sheet, loans increased by $11.0 million (0.3%) from December 31, 2024, to March 31, 2025. Period-end deposit balances also saw an increase of $114.3 million during the same period.
City Holding Company's effective income tax rate for the first quarter of 2025 was 17.8%, compared to 19.0% for the year ended December 31, 2024, and 19.5% for the quarter ended March 31, 2024.
The company's tangible equity stood at $597 million at the end of March 31, 2025. The tangible equity ratio increased from 9.1% at the end of December 31, 2024, to 9.2% at the end of March 31, 2025. Furthermore, City National's leverage ratio was 9.2%, its common equity tier I ratio was 14.4%, its tier I capital ratio was 14.4%, and its total risk-based capital ratio was 14.9% at the end of March 31, 2025.
On March 26, 2025, the board of directors approved a quarterly cash dividend of $0.79 per share, payable on April 30, 2025, to shareholders of record as of April 15, 2025. During the quarter ended March 31, 2025, the company repurchased 80,600 common shares at a weighted average price of $117.42 per share as part of a one million share repurchase plan authorized by the board of directors in January 2024. As of March 31, 2025, the company could repurchase 740,900 additional shares under the current plan.
City National operates 97 branches across West Virginia, Kentucky, Virginia, and Ohio. As a result of these announcements, the company's shares have moved 0.5% on the market, and are now trading at a price of $115.84. For more information, read the company's full 8-K submission here.
