City Holding Company (NASDAQ: CHCO), a $6.8 billion bank holding company headquartered in Charleston, West Virginia, has released its first-quarter results for 2026. The company reported a net income of $31.7 million, with diluted earnings per share of $2.20. This translates to a return on assets of 1.92% and a return on tangible equity of 19.3%.
The company's net interest income saw a slight decrease, falling by approximately $1.0 million, or 1.6%, from $60.6 million in the fourth quarter of 2025 to $59.6 million in the first quarter of 2026. This decrease is primarily attributed to a decline in the yield on loans and investments. Specifically, the maturity of $150 million in swap agreements in late 2025 impacted investment yields. Despite this, the company's reported net interest margin improved slightly from 3.94% to 3.97% over the same period.
City Holding's effective income tax rate remained consistent at 19.2% for the first quarter of 2026, mirroring the rate for the year ended December 31, 2025. The company's loan-to-deposit ratio stood at 84.1%, and the loan-to-asset ratio was 66.5% as of March 31, 2026. Investment securities accounted for 21.8% of assets.
The company's Board of Directors approved a quarterly cash dividend of $0.87 per share, payable on April 30, 2026, to shareholders of record as of April 15, 2026. Furthermore, the board authorized the repurchase of up to 1,000,000 shares of its common stock, representing approximately 7% of outstanding shares, in open market transactions. These actions underscore the company's commitment to delivering value to its shareholders.
