City Holding Company (CHCO) has announced its record quarterly results, reporting a net income of $35.2 million and diluted earnings of $2.41 per share for the quarter ended September 30, 2025. The company achieved a return on assets of 2.11% and a return on tangible equity of 22.5%.
Net interest income increased by approximately $2.2 million, or 3.7%, from the second quarter of 2025 to $61.1 million in the third quarter of 2025. The net interest margin also increased from 3.95% to 4.04% during the same period.
The ratio of nonperforming assets to total loans and other real estate owned remained stable at 0.32%, or $14.3 million, at September 30, 2025. Total past due loans increased slightly from $8.0 million to $8.3 million during the same period.
Non-interest income was reported at $20.2 million for the quarter ended September 30, 2025, compared to $20.3 million for the same period in 2024. Excluding unrealized fair value gains on equity securities, non-interest income remained consistent at $20.0 million for both quarters.
Non-interest expenses increased by $0.3 million, or 0.7%, from the third quarter of 2024 to $37.9 million in the third quarter of 2025. This increase was primarily due to higher salaries and employee benefits, along with other tax-related matters.
Gross loans increased by $73.6 million (1.7%) from June 30, 2025, to $4.41 billion at September 30, 2025. Period-end deposit balances increased by $8.8 million, or 0.2%, during the same period.
The effective income tax rate for the third quarter of 2025 was 19.7%, compared to 19.0% for the year ended December 31, 2024.
City Holding Company's tangible equity ratio increased from 9.1% at December 31, 2024, to 9.8% at September 30, 2025. At the same date, the company's leverage ratio was 10.2%, its common equity tier I ratio was 15.8%, its tier I capital ratio was 15.8%, and its total risk-based capital ratio was 16.3%.
The board of directors approved a quarterly cash dividend of $0.87 per share, representing a 10.0% increase from the previous dividend paid on July 31, 2025.
The company had significant resources available, including a cash balance of $54 million and dividends available from City National of $100 million through the nine months ended September 30, 2025.
City National operates 96 branches across West Virginia, Kentucky, Virginia, and Ohio. Today the company's shares have moved -0.9% to a price of $120.36. For the full picture, make sure to review CITY HOLDING CO's 8-K report.
