City Holding Company reported second-quarter 2026 net income of $33.3 million, up from the prior quarter’s $32.5 million, with diluted earnings of $2.35 per share. Return on assets was 1.98% and return on tangible equity was 20.7%.
Net interest income rose to $60.8 million in the June quarter from $59.6 million in the March quarter, an increase of $1.2 million, or 1.9%. Tax-equivalent net interest income increased $1.1 million to $61.0 million. The net interest margin held steady at 3.97% in both quarters.
Credit quality improved. Nonperforming assets fell to $10.6 million, or 0.24% of total loans and other real estate owned, from $12.2 million, or 0.27%, at March 31. Total past due loans edged up to $8.6 million from $8.5 million, but remained 0.19% of total loans in both periods.
The company recorded a provision for credit losses of $0.4 million in the second quarter, down from a $0.6 million provision in the first quarter.
Non-interest income increased to $20.8 million from $19.5 million a year earlier, a gain of $1.2 million. Excluding securities gains and losses, non-interest income rose $1.1 million, or 5.4%, to $20.7 million. Wealth and investment management fees increased $0.4 million, service charges rose $0.4 million, and bankcard revenue climbed $0.3 million.
Non-interest expenses increased $0.6 million, or 1.5%, to $39.8 million from $39.2 million in the second quarter of 2025. Salaries and employee benefits rose $0.5 million, and equipment and software-related expenses increased $0.2 million.
Loans grew $10.2 million, or 0.2%, from March 31 to $4.50 billion at June 30. Commercial and industrial loans rose $12.5 million, and home equity loans increased $6.3 million, while residential real estate loans declined $6.9 million and consumer loans fell $3.1 million.
Period-end deposits declined $3.5 million from the first quarter, but average depository balances increased $59.5 million, or 1.1%, to $5.33 billion. Average noninterest-bearing demand balances rose $30.3 million, and average savings balances increased $28.9 million.
The effective tax rate was 19.4% in the second quarter, compared with 18.9% in the same quarter last year.
At June 30, the loan-to-deposit ratio was 84.3%, and the loan-to-asset ratio was 66.5%. Tangible equity was $652 million, and the tangible equity ratio remained 9.9%. City National’s leverage ratio was 9.7%, CET1 ratio 15.0%, tier 1 capital ratio 15.0%, and total risk-based capital ratio 15.5%.
During the quarter, the company repurchased 59,156 shares at a weighted average price of $122.46. It also approved a quarterly cash dividend of $0.87 per share. Today the company's shares have moved 3.16% to a price of $139.25. If you want to know more, read the company's complete 8-K report here.
