# CITY HOLDING CO (CHCO)

Informational only - not investment advice.

CIK: 0000726854
SIC: 6021 National Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6021 National Commercial Banks](/industry/6021/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=726854
Filing source: https://www.sec.gov/Archives/edgar/data/726854/000072685426000062/chco-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0000726854-26-000062 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000726854.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 321,216,000 USD | 2025 | verified |
| Net income | 130,485,000 USD | 2025 | verified |
| Assets | 6,722,018,000 USD | 2025 | verified |
| Free cash flow | 128,448,000 USD | 2025 | computed |
| Net margin | 40.62% | 2025 | computed |
| Revenue YoY | +4.83% | 2025 | computed |
| ROE | 16.12% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CHCO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 40.6% | 22.9% | 96 | 76 |
| Revenue growth | 4.8% | 5.2% | 45 | 76 |
| FCF margin | 40.0% | 22.0% | 92 | 65 |
| ROE | 16.1% | 9.9% | 97 | 76 |
| ROA | 1.9% | 1.1% | 95 | 76 |
| Liabilities / equity | 7.30 | 8.12 | 29 | 76 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6021 National Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 321216000 | USD | 2025 | 2026-02-25 |
| Net income | 130485000 | USD | 2025 | 2026-02-25 |
| Assets | 6722018000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000726854.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 132,152,000 | 142,930,000 | 163,901,000 | 197,700,000 | 178,259,000 | 165,467,000 | 189,688,000 | 271,264,000 | 306,429,000 | 321,216,000 |
| Net income | 52,128,000 | 54,310,000 | 70,002,000 | 89,352,000 | 89,595,000 | 88,080,000 | 102,071,000 | 114,365,000 | 117,101,000 | 130,485,000 |
| Diluted EPS | 3.45 | 3.48 | 4.49 | 5.42 | 5.55 | 5.66 | 6.80 | 7.61 | 7.89 | 8.93 |
| Operating cash flow | 65,330,000 | 76,126,000 | 77,572,000 | 105,048,000 | 89,795,000 | 102,273,000 | 115,817,000 | 137,580,000 | 131,896,000 | 131,372,000 |
| Capital expenditures | 5,517,000 | 6,574,000 | 10,192,000 | 4,729,000 | 5,544,000 | 3,323,000 | 2,141,000 | 2,962,000 | 2,706,000 | 2,924,000 |
| Dividends paid | 25,718,000 | 27,120,000 | 29,583,000 | 35,547,000 | 36,673,000 | 36,138,000 | 36,702,000 | 39,993,000 | 43,482,000 | 47,294,000 |
| Share buybacks | 10,018,000 | 0.00 | 20,271,000 | 19,431,000 | 36,481,000 | 58,678,000 | 26,449,000 | 60,134,000 | 17,896,000 | 45,760,000 |
| Assets | 3,984,403,000 | 4,132,281,000 | 4,899,012,000 | 5,018,756,000 | 5,758,640,000 | 6,003,695,000 | 5,878,106,000 | 6,168,052,000 | 6,459,459,000 | 6,722,018,000 |
| Liabilities | 3,541,965,000 | 3,629,774,000 | 4,298,248,000 | 4,360,773,000 | 5,057,534,000 | 5,322,590,000 | 5,300,254,000 | 5,490,986,000 | 5,728,795,000 | 5,912,338,000 |
| Stockholders' equity | 442,438,000 | 502,507,000 | 600,764,000 | 657,983,000 | 701,106,000 | 681,105,000 | 577,852,000 | 677,066,000 | 730,664,000 | 809,680,000 |
| Cash and cash equivalents | 88,139,000 | 82,508,000 | 122,991,000 | 140,144,000 | 528,659,000 | 634,631,000 | 200,000,000 | 156,276,000 | 225,389,000 | 191,919,000 |
| Free cash flow | 59,813,000 | 69,552,000 | 67,380,000 | 100,319,000 | 84,251,000 | 98,950,000 | 113,676,000 | 134,618,000 | 129,190,000 | 128,448,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 39.45% | 38.00% | 42.71% | 45.20% | 50.26% | 53.23% | 53.81% | 42.16% | 38.21% | 40.62% |
| Return on equity | 11.78% | 10.81% | 11.65% | 13.58% | 12.78% | 12.93% | 17.66% | 16.89% | 16.03% | 16.12% |
| Return on assets | 1.31% | 1.31% | 1.43% | 1.78% | 1.56% | 1.47% | 1.74% | 1.85% | 1.81% | 1.94% |
| Liabilities / equity | 8.01 | 7.22 | 7.15 | 6.63 | 7.21 | 7.81 | 9.17 | 8.11 | 7.84 | 7.30 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/CHCO/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000726854.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.83 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.63 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 2.16 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 70,189,000 | 29,839,000 | 1.98 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 71,864,000 | 27,452,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 73,568,000 | 29,523,000 | 1.97 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 75,990,000 | 29,115,000 | 1.96 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 78,051,000 | 29,809,000 | 2.02 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 78,820,000 | 28,654,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 77,388,000 | 30,342,000 | 2.06 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 80,291,000 | 33,387,000 | 2.29 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 82,090,000 | 35,188,000 | 2.41 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 81,447,000 | 31,568,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 78,769,000 | 31,735,000 | 2.20 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 80,211,000 | 33,298,000 | 2.35 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CHCO's latest 10-K: [/company/CHCO/business/](/company/CHCO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CHCO's latest 10-K: [/company/CHCO/risk-factors/](/company/CHCO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/726854/000072685426000164/chco-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

Critical Accounting Policies and Estimates

The accounting policies of the Company conform with U.S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. These estimates and assumptions are based on information available to management as of the date of the financial statements. Actual results could differ significantly from management’s estimates. As this information changes, management’s estimates and assumptions used to prepare the Company’s financial statements and related disclosures may also change. The most significant accounting policies followed by the Company are presented in Note One to the audited financial statements included in the Company’s 2025 Annual Report to Shareholders. The information included in this Quarterly Report on Form 10-Q, including the Consolidated Financial Statements, Notes to Consolidated Financial Statements, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, should be read in conjunction with the financial statements and notes thereto included in the 2025 Annual Report of the Company.  Based on the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified: (i) the determination of the allowance for credit losses and (ii) income taxes to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new information becomes available.

Allowance for Credit Losses (ACL)

The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off in the future. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. These evaluations are conducted at least quarterly and more frequently if deemed necessary. Additionally, all commercial loans within the portfolio are subject to internal risk grading. Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process.

In evaluating the appropriateness of its ACL, the Company stratifies the loan portfolio into five major groupings. The Company has identified the following portfolio segments and measures the ACL using the following methods:

[[GREPCENT_TABLE]]
[["Portfolio Segment","Measurement Method"],["Commercial and industrial","Migration"],["Commercial real estate:"],["1-4 family","Migration"],["Hotels","Migration"],["Multi-family","Migration"],["Non Residential Non-Owner Occupied","Migration"],["Non Residential Owner Occupied","Migration"],["Residential real estate","Vintage"],["Home equity","Vintage"],["Consumer","Vintage"]]
[[/GREPCENT_TABLE]]

Migration is an analysis that tracks a closed pool of loans for a configurable period of time and calculates a loss ratio on only those loans in the pool at the start date based on outstanding balance. Vintage is a predictive loss model that includes a reasonable approximation of probable and estimable future losses by tracking each loan's net losses over the life of the loan as compared to its original balance. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable, the expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

39

Table of Contents

Expected credit losses are estimated over the contractual term of the loan, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a restructured loan will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

The Company uses a number of economic variables in its scenarios to estimate the ACL, with the most significant drivers being an unemployment rate forecast and qualitative adjustments. In the June 30, 2026 and December 31, 2025 estimates, the Company assumed a 2-year unemployment forecast range of 4.2% to 4.6%. Historical loss rates from periods where the average unemployment rate matches the forecast range are considered when calculating the forecast period loss rate.

Based on sensitivity analysis of all portfolios, a 0.0050% change (slight improvement or decline on bank's scale) in all 11 qualitative risk factors (where assigned) would have a $2.4 million impact on the reserve allocation. Changing each factor by 0.01% (moderate improvement or decline) would have a $4.7 million impact. Management recognizes that these are extreme scenarios and it is very unlikely that all risk factors would change by 0.005% or 0.01% simultaneously. For the June 30, 2026 estimate, management did not adjust any qualitative factors utilized in the previous quarter.

Income Taxes

The Company is subject to federal and state income taxes in the jurisdictions in which it conducts business.  In computing the provision for income taxes, management must make judgments regarding interpretation of laws in those jurisdictions.  Because the application of tax laws and regulations for many types of transactions is susceptible to varying interpretations, amounts reported in the financial statements could be changed at a later date upon final determinations by taxing authorities.  On a quarterly basis, the Company estimates its annual effective tax rate for the year and uses that rate to provide for income taxes on a year-to-date basis.  The amount of unrecognized tax benefits could change over the next twelve months as a result of various factors.  However, management cannot currently estimate the range of possible change.  The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and various state taxing authorities for the years ended December 31, 2022 and forward.

The effective tax rate is calculated by taking the statutory rate and adjusting for permanent and discrete items. The discrete items can vary between periods but historically have remained consistent.

40

Table of Contents

Financial Summary

Six months ended June 30, 2026 vs. 2025

The Company's financial performance is summarized in the following table:

[[GREPCENT_TABLE]]
[["","Six months ended June 30, 2026"],["","2026","2025"],["Net income available to common shareholders (in thousands)","$","65,033","","$","63,729"],["Earnings per common share, basic","$","4.55","","$","4.35"],["Earnings per common share, diluted","$","4.55","","$","4.35"],["Dividend payout ratio","38.2","%","36.3","%"],["ROA*","1.95","%","1.96","%"],["ROE*","16.1","%","17.1","%"],["ROATCE*","20.0","%","21.7","%"],["Average equity to average assets ratio","12.1","%","11.5","%"]]
[[/GREPCENT_TABLE]]

*ROA (Return on Average Assets) is a measure of the effectiveness of asset utilization. ROE (Return on Average Equity) is a measure of the return on shareholders' investment. ROATCE (Return on Average Tangible Common Equity) is a measure of the return on shareholders' equity, less intangible assets.

The Company's net interest income was $120.4 million for the six months ended June 30, 2026 compared to $114.7 million for the six months ended June 30, 2025 (see Net Interest Income). The Company recorded a provision for credit losses of $1.0 million for the six months ended June 30, 2026 compared to a recovery of credit losses of $1.8 million for the six months ended June 30, 2025 (see Allowance for Credit Losses). As further discussed under the caption Non-Interest Income and Non-Interest Expense, non-interest income increased $2.1 million and non-interest expense increased $2.4 million for the six months ended June 30, 2026 from the six months ended June 30, 2025.

Financial Summary

Three months ended June 30, 2026 vs. 2025

The Company's financial performance is summarized in the following table:

[[GREPCENT_TABLE]]
[["","Three months ended June 30,"],["","2026","2025"],["Net income available to common shareholders (in thousands)","$","33,298","","$","33,387"],["Earnings per common share, basic","$","2.35","","$","2.29"],["Earnings per common share, diluted","$","2.35","","$","2.29"],["Dividend payout ratio","37.0","%","34.5","%"],["ROA(1)","1.98","%","2.03","%"],["ROE(1)","16.6","%","17.9","%"],["ROATCE(1)","20.7","%","22.7","%"],["Average equity to average assets ratio","11.9","%","11.4","%"]]
[[/GREPCENT_TABLE]]

(1)    ROA (Return on Average Assets) is a measure of the effectiveness of asset utilization. ROE (Return on Average Equity) is a measure of the return on shareholders' investment. ROATCE (Return on Average Tangible Common Equity) is a measure of the return on shareholders' equity, less intangible assets.

The Company's net interest income was $60.8 million for the three months ended June 30, 2026 compared to $58.9 million for the three months ended June 30, 2025 (see Net Interest Income). The Company recorded a $0.4 million provision

41

Table of Contents

for credit losses for the three months ended June 30, 2026 compared to a $1.9 million recovery of credit losses for the three months ended June 30, 2025 (see Allowance for Credit Losses). As further discussed under the caption Non-Interest Income and Non-Interest Expense, non-interest income increased $1.2 million and non-interest expense increased $0.6 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Balance Sheet Analysis

Selected balance sheet fluctuations from the year ended December 31, 2025 are summarized in the following table (in millions, except percentages):

[[GREPCENT_TABLE]]
[["","June 30,","December 31,"],["","2026","2025","$ Change","% Change"],["Cash and cash equivalents","$","267.2","","$","191.9","","$","75.3","","39.2","%"],["Total investment securities","1,506.5","","1,532.8","","(26.3)","","(1.7)"],["Gross loans","4,501.8","","4,503.3","","(1.5)","","\u2014"],["Total deposits","5,340.2","","5,301.0","","39.2","","0.7"]]
[[/GREPCENT_TABLE]]

Cash and cash equivalents increased $75.3 million (39.2%) from December 31, 2025 to $267.2 million at June 30, 2026 primarily due to income from operations, an increase in deposit balances and proceeds from maturities and calls of available-for-sale securities that were partially offset by cash utilized for common stock repurchases.

Total investment securities decreased $26.3 million (1.7)% from December 31, 2025 to $1.51 billion at June 30, 2026, due to maturities and calls of available-for-sale securities.

Gross loans remained stable at $4.50 billion at December 31, 2025 and June 30, 2026, respectively. Consumer loans decreased $7.4 million

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/726854/000072685426000062/chco-20251231.htm
Complete FY 2025 MD&A: /company/CHCO/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

Item 7.Management's Discussion and Analysis of Financial Condition and Results of Operations 

Statistical Information

The information noted below is provided pursuant to Guide 3 - Statistical Disclosure by Bank Holding Companies and 17 CFR § 229.1400.

[[GREPCENT_TABLE]]
[["Description of Information","","PageReference"],["Item I.","Distribution of Assets, Liabilities and Stockholders'"],["","Equity; Interest Rates and Interest Differential"],["","a.","Average Balance Sheets","34"],["","b.","Analysis of Net Interest Earnings","35"],["","c.","Rate Volume Analysis of Changes in Interest Income and Expense","35"],["II.","Investment Portfolio"],["","a.","Maturity Schedule of Investments","45"],["III.","Loan Portfolio"],["","a.","Types of Loans","45"],["","b.","Maturities and Sensitivity to Changes in Interest Rates","45"],["","c.","Other Interest Bearing Assets","None"],["","d.","Risk Elements","76"],["V.","Deposits"],["","a.","Breakdown of Deposits by Categories, Average Balance and Average Rate Paid","34"],["","b.","Maturity Schedule of Uninsured Time Certificates of Deposit","51"],["VI.","Return on Equity and Assets","33"],["VII.","Short-term Borrowings","40"]]
[[/GREPCENT_TABLE]]

30

CITY HOLDING COMPANY

City Holding Company (the "Company"), a West Virginia corporation headquartered in Charleston, West Virginia, is a registered financial holding company under the Bank Holding Company Act and conducts its principal activities through its wholly owned subsidiary, City National Bank of West Virginia ("City National"). City National is a retail and consumer-oriented community bank with 96 bank branches in West Virginia (58), Kentucky (22), Virginia (13) and southeastern Ohio (3). City National provides credit, deposit, and wealth and investment management services to its customers in a broad geographical area that includes many rural and small community markets in addition to larger cities including Charleston (WV), Huntington (WV), Martinsburg (WV), Ashland (KY), Lexington (KY), Winchester (VA) and Staunton (VA). In the Company's key markets, the Company's primary subsidiary, City National, often ranks in the top three relative to deposit market share and the top two relative to branch share (Charleston/Huntington MSA, Beckley/Lewisburg counties, Staunton MSA and Winchester, VA/WV Eastern Panhandle counties). In addition to its branch network, City National's delivery channels include automated-teller-machines ("ATMs"), interactive-teller-machines ("ITMs"), mobile banking, debit cards, interactive voice response systems, and internet technology. The Company’s business activities are currently limited to one reportable business segment, which is community banking. See Note Three for additional information on the Company's reportable business segment.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The accounting policies of the Company conform to U.S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. These estimates and assumptions are based on information available to management as of the date of the financial statements. Actual results could differ significantly from management’s estimates. As this information changes, management’s estimates and assumptions used to prepare the Company’s financial statements and related disclosures may also change. The most significant accounting policies followed by the Company are presented in Note One of the Notes to Consolidated Financial Statements included herein. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified: (i) the determination of the allowance for credit losses and (ii) income taxes accounting to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new information becomes available.

Allowance for Credit Losses

The Allowance for Credit Losses section of this Annual Report on Form 10-K provides management’s analysis of the Company’s allowance for credit losses and related provision. The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. These evaluations are conducted at least quarterly and more frequently if deemed necessary. Additionally, all commercial loans within the portfolio are subject to internal risk grading. Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process.

31

In evaluating the appropriateness of its allowance for credit losses, the Company stratifies the loan portfolio into six major groupings. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods:

[[GREPCENT_TABLE]]
[["Portfolio Segment","Measurement Method"],["Commercial and industrial","Migration"],["Commercial real estate:"],["1-4 family","Migration"],["Hotels","Migration"],["Multi-family","Migration"],["Non Residential Non-Owner Occupied","Migration"],["Non Residential Owner Occupied","Migration"],["Residential real estate","Vintage"],["Home equity","Vintage"],["Consumer","Vintage"]]
[[/GREPCENT_TABLE]]

Migration is an analysis that tracks a closed pool of loans for a configurable period of time and calculates a loss ratio on only those loans in the pool at the start date based on outstanding balance. Vintage is a predictive loss model that includes a reasonable approximation of probable and estimable future losses by tracking each loan's net losses over the life of the loan as compared to its original balance. For demand deposit overdrafts, the allowance for credit losses is measured using the historical loss rate. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable, the expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Expected credit losses are estimated over the contractual term of the loan, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled-debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

The Company uses a number of economic variables in its scenarios to estimate the allowance for credit losses, with the most significant drivers being an unemployment rate forecast and qualitative adjustments. In the December 31, 2025 estimate, the Company assumed a 2-year unemployment forecast range of 4.2% to 4.6%, compared to a range of 4.2% to 4.8% utilized in the December 31, 2024 estimate. Historical loss rates from periods where the average unemployment rate matches the forecast range are considered when calculating the forecast period loss rate. Based on sensitivity of the portfolio, the change had a less than $0.5 million impact on the reserve.

Based on sensitivity analysis of all portfolios, a 0.0050% change (slight improvement or decline on bank's scale) in all 11 qualitative risk factors (where assigned) would have a $2.4 million impact on the reserve allocation. Changing each factor by 0.01% (moderate improvement or decline) would have a $4.7 million impact. Management recognizes that these are extreme scenarios and it is very unlikely that all risk factors would change by 0.005% or 0.01% simultaneously. For the December 31, 2025 estimate, management assigned a slight improvement (0.005% decrease) to the Criticized/Classified loan trends factor in each commercial pool which decreased the reserve $0.1 million.

Income Taxes

The Income Taxes section of this Annual Report on Form 10-K provides management’s analysis of the Company’s income taxes.  The Company is subject to federal and state income taxes in the jurisdictions in which it conducts business.  In computing the provision for income taxes, management must make judgments regarding interpretation of laws in those jurisdictions.  Because the application of tax laws and regulations for many types of transactions is susceptible to varying interpretations, amounts reported in the financial statements could be changed at a later date upon final determinations by taxing authorities.  On a quarterly basis, the Company estimates its annual effective tax rate for the year and uses that rate to provide for income taxes on a year-to-date basis.  The Company's unrecognized tax benefits could change over the next twelve months as a result of various factors.    The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and various state taxing authorities for the years ended December 31, 2022 and forward.

32

The effective tax rate is calculated by taking the statutory rate and adjusting for permanent and discrete items. The discrete items can vary between periods but historically have remained consistent.

FINANCIAL SUMMARY

The Company’s financial performance over the previous three years is summarized in the following table:

[[GREPCENT_TABLE]]
[["","2025","2024","2023"],["Net income available to common shareholders (in thousands)","$","130,485","","$","117,101","","$","114,365"],["Earnings per common share, basic","$","8.94","","$","7.91","","$","7.62"],["Earnings per common share, diluted","$","8.93","","$","7.89","","$","7.61"],["Cash dividends declared","$","3.32","","$","3.01","","$","2.73"],["Book value per share","$","56.41","","$","49.69","","$","45.65"],["Dividend payout ratio","37.2","%","38.1","%","35.9","%"],["ROA*","1.97","%","1.85","%","1.87","%"],["ROE*","16.9","%","16.4","%","18.0","%"],["ROATCE*","21.2","%","21.2","%","23.8","%"]]
[[/GREPCENT_TABLE]]

*ROA (Return on Average Assets) is a measure of the effectiveness of asset utilization. ROE (Return on Average Equity) is a measure of the return on shareholders’ investment. ROATCE (Return on Average Tangible Common Equity) is a measure of the return on shareholders’ equity less intangible assets.

BALANCE SHEET ANALYSIS

Select balance sheet fluctuations and ratios are summarized in the following table (in millions):

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CHCO/mda/fy2025/
All MD&A years: /company/CHCO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CHCO/mda/fy2024/): filed 2025-02-26; accession 0000726854-25-000037 (https://www.sec.gov/Archives/edgar/data/726854/000072685425000037/chco-20241231.htm)
- [FY 2023 MD&A](/company/CHCO/mda/fy2023/): filed 2024-02-28; accession 0000726854-24-000040 (https://www.sec.gov/Archives/edgar/data/726854/000072685424000040/chco-20231231.htm)
- [FY 2022 MD&A](/company/CHCO/mda/fy2022/): filed 2023-02-22; accession 0000726854-23-000015 (https://www.sec.gov/Archives/edgar/data/726854/000072685423000015/chco-20221231.htm)
- [FY 2021 MD&A](/company/CHCO/mda/fy2021/): filed 2022-02-24; accession 0000726854-22-000033 (https://www.sec.gov/Archives/edgar/data/726854/000072685422000033/chco-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6021 National Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CHCO.md · JSON record: /company/CHCO.json · verified financials: /company/CHCO/financials.json / /company/CHCO/financials.csv · machine TOC for the whole site: /llms.txt