City Holding Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the quarter ended September 30, 2026, was $34.6 million, compared to $35.2 million in the same period in 2025.
• Diluted earnings per share (EPS) reached a record $2.43 for the quarter, up from $2.41 in the third quarter of 2025.
• Return on assets (ROA) was 2.03% for the quarter, compared to 2.11% in the prior year quarter.
• Return on tangible equity (ROTE) was 20.9% for the quarter, down from 22.5% in the third quarter of 2025.
• Net interest income increased 3.0% to $62.6 million from $60.8 million in the second quarter of 2026.
• Net interest margin increased to 4.04% from 3.97% in the second quarter of 2026.
• Non-interest income rose $0.9 million to $21.4 million in the third quarter of 2026, compared to $20.5 million in the third quarter of 2025.
• Non-interest expenses increased $2.6 million to $40.9 million in the third quarter of 2026, compared to $38.3 million in the third quarter of 2025.
• For the nine months ended September 30, 2026, net income was $99.6 million, compared to $98.9 million for the same period in 2025.
• Diluted EPS for the nine months ended September 30, 2026, was $6.98, compared to $6.75 in 2025.
• The effective income tax rate for the third quarter of 2026 was 19.9%, compared to 19.7% in the third quarter of 2025.
• Total assets were $6.79 billion at September 30, 2026.
• Gross loans increased to $4.55 billion at September 30, 2026, from $4.50 billion at June 30, 2026.
• Total deposits increased to $5.36 billion at September 30, 2026, from $5.34 billion at June 30, 2026.
• The loan-to-deposit ratio was 84.9% at September 30, 2026.
• Tangible equity was $625 million at September 30, 2026.
• The tangible equity ratio declined to 9.4% at September 30, 2026, from 9.9% at December 31, 2025.
• City National Bank's Common Equity Tier 1 ratio was 15.5%, Tier 1 Capital ratio was 15.5%, and Total Risk-Based Capital ratio was 15.9% at September 30, 2026.

Guidance and Future Outlook:

• The press release does not provide specific forward-looking financial guidance, revenue targets, or earnings projections beyond the standard safe harbor statement regarding inherent uncertainties.
• Management notes that actual results may differ from forward-looking statements due to factors including general economic conditions, credit risk, changes in the real estate market, interest rate environment, and regulatory changes.

Business Segments and Product Lines:

• Commercial and industrial loans increased $20.1 million (4.4%) during the quarter.
• Commercial real estate loans increased $12.9 million (0.7%) during the quarter.
• Residential real estate loans increased $8.8 million (0.5%) during the quarter.
• Home equity loans increased $8.2 million (3.6%) during the quarter.
• Average noninterest-bearing demand balances increased $28.0 million, and average savings deposits balances increased $11.0 million during the quarter.
• Average time deposits decreased $9.5 million during the quarter.
• Service charges increased $0.5 million (6.0%) and wealth and investment management fee income increased $0.3 million (10.5%) in the third quarter of 2026 compared to the prior year.
• The company operates 95 branches across West Virginia, Kentucky, Virginia, and Ohio.

Market and Competitive Landscape:

• The company's deposit mix is weighted heavily toward checking and savings accounts, which fund 60.0% of assets at September 30, 2026.
• 14.6% of time deposits had balances of more than $250,000, reflecting a core retail orientation.
• The company faces competition from non-bank financial institutions and financial technology companies, as noted in risk factors.

Risks and Challenges:

• The ratio of nonperforming assets to total loans and other real estate owned remained stable at 0.24% ($10.6 million) at September 30, 2026.
• Total past due loans decreased to $8.3 million (0.18% of total loans) at September 30, 2026, from $8.6 million (0.19%) at June 30, 2026.
• The company recorded a recovery of credit losses of $0.1 million in the third quarter of 2026, compared to a recovery of $0.5 million in the same period in 2025.
• Unrealized security losses during the nine months ended September 30, 2026, contributed to the decline in the tangible equity ratio.
• Risks include potential deterioration of asset quality, insufficient allowance for credit losses, real estate market value changes, and operational risks such as cybersecurity and data breaches.

Management Commentary and Tone:

• The press release describes the results as "record quarterly results."
• Management attributes the increase in net interest income to higher yields on loans and investments and increased average loan and investment balances.
• Management notes that the increase in non-interest expenses was largely due to salary adjustments, increased incentive compensation, and higher health insurance costs.
• The company maintains a strong capital position with regulatory capital ratios significantly above levels required to be considered "well capitalized."

Other Key Points:

• On September 30, 2026, the Board of Directors approved a quarterly cash dividend of $1.00 per share, payable October 30, 2026, representing a 15% increase from the $0.87 per share dividend paid in July 2026.
• City Holding Company had a cash balance of $74 million and dividends available from City National of approximately $120 million at September 30, 2026, providing resources for share repurchases.
• City National Bank had the capacity to borrow an additional $1.8 billion from existing Federal Reserve and Federal Home Loan Bank facilities as of September 30, 2026.
• Approximately $688 million of City National's investment securities were pledged to collateralize customer repurchase agreements and various deposit accounts, leaving $801 million unpledged.
• Treasury shares repurchased during the nine months ended September 30, 2026, totaled 321,000 shares, with an average repurchase price of $118.65.
• The company's loan to asset ratio was 67.0% at September 30, 2026.
• Investment securities totaled 21.9% of assets as of September 30, 2026.