City Holding Company (CHCO, Financial) filed Quarterly Report for the period ended 2009-09-30.
City Holding Company is a multi-bank holding company that providesdiversified financial products and services to consumers and local businesses. City Holding Company has a market cap of $485.9 million; its shares were traded at around $30.44 with a P/E ratio of 13.5 and P/S ratio of 2.9. The dividend yield of City Holding Company stocks is 4.5%. City Holding Company had an annual average earning growth of 3.5% over the past 5 years.
The Company s net interest income for the first nine months of 2009 decreased $3.8 million compared to the first nine months of 2008 (see Net Interest Income). The Company recorded a provision for loan losses of $5.5 million for the first nine months of 2009 while $5.1 million was recorded for the first nine months of 2008 (see Allowance and Provision for Loan Losses). The Company recorded $4.4 million and $27.5 million of investment impairment losses in the first nine months of 2009 and the first nine months of 2008, respectively (see Non-Interest Income and Expense). As further discussed under the caption Non-Interest Income and Expense, excluding other than temporary investment impairment losses, investment losses, and the gain from the Visa initial public offering, non-interest income would have increased $0.9 million from the nine months ended September 30, 2008, to the nine months ended September 30, 2009. Excluding the loss on the early redemption of the trust preferred securities in the first nine months of 2008, non-interest expense for the nine months ended September 30, 2009 would have increased $1.3 million from the nine months ended September 30, 2008.
The Company s net interest income for the third quarter of 2009 decreased $2.6 million compared to the third quarter of 2008 (see Net Interest Income). The Company recorded a provision for loan losses of $1.68 million for the third quarter of 2009 while $2.35 million was recorded for the third quarter of 2008 (see Allowance and Provision for Loan Losses). As further discussed under the caption Non-Interest Income and Expense, excluding investment impairment losses, non-interest income remained flat at $14.7 million for both the three months ended September 30, 2008, and the three months ended September 30, 2009. Non-interest expense for the three months ended September 30, 2009 decreased $0.4 million from the three months ended September 30, 2008.
During the third and fourth quarters of 2008, the Company sold $450 million of interest rate floors. The gain from sales of these interest rate floors of $16.7 million will be recognized over the remaining lives of the various hedged loans. During the first nine months of 2009, the Company recognized $7.8 million of interest income compared to $5.6 million of interest income recognized in the first nine months of 2008 from the interest rate floors.
The Company s tax equivalent net interest income decreased $2.6 million, or 9.8%, from $26.5 million during the third quarter of 2008 to $23.9 million during the third quarter of 2009, as interest income from loans and investments decreased more quickly than interest expense on deposits and other interest bearing liabilities. Due to a decrease in the Company s yield on loans of 105 basis points from the third quarter of 2008, interest income related to loans declined $4.2 million. In addition, interest income declined $0.9 million from the third quarter of 2008 due to a decline in the yield on investments. Deposit growth also increased interest expense by $1.2 million. Partially offsetting these decreases in net interest income was a decline in interest expense on deposits of $1.9 million due to a decline of 37 basis points on interest bearing deposits. In addition, higher average balances of loans and investments increased interest income by $1.3 million. The Company s reported net interest margin decreased from 4.78% for the quarter ended September 30, 2008 to 4.09% for the quarter ended September 30, 2009.
During the third and fourth quarters of 2008, the Company sold $450 million of interest rate floors. The gain from sales of these interest rate floors of $16.7 million will be recognized over the remaining lives of the various hedged loans – predominantly prime-based commercial and home equity loans. During the third quarter of 2009, the Company recognized $2.2 million of interest income compared to $2.4 million of interest income recognized in the third quarter of 2008 from the interest rate floors.
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City Holding Company is a multi-bank holding company that providesdiversified financial products and services to consumers and local businesses. City Holding Company has a market cap of $485.9 million; its shares were traded at around $30.44 with a P/E ratio of 13.5 and P/S ratio of 2.9. The dividend yield of City Holding Company stocks is 4.5%. City Holding Company had an annual average earning growth of 3.5% over the past 5 years.
Highlight of Business Operations:
On a quarterly basis, the Company performs a review of investment securities to determine if any unrealized losses are other than temporarily impaired. Management considers the following, amongst other things, in its determination of the nature of the unrealized losses, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As a result of this review, the Company recognized $4.4 million of other than temporary impairment charges during the nine months ended September 30, 2009. These impairment charges were related to credit losses on pooled bank trust preferreds with a remaining book value of $7.4 million and community bank and bank holding company equity positions with a remaining book value of $8.5 million at September 30, 2009. The Company s portfolio of perpetual callable preferred securities, preferred securities, and trust preferred securities primarily invested in regional banks have a total book value of $109.7 million and unrealized losses of $5.3 million at September 30, 2009. The Company continues to actively monitor the market values of these investments along with the financial strength of the issuers behind these securities, as well as our entire investment portfolio. Based on the market information available, the Company believes that the recent declines in market value are temporary and that the Company does not have the intent to sell any of the securities classified as available for sale and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The Company cannot guarantee that such securities will recover and if additional information becomes available in the future to suggest that the losses are other than temporary, the Company may need to record impairment charges in future periods.The Company s net interest income for the first nine months of 2009 decreased $3.8 million compared to the first nine months of 2008 (see Net Interest Income). The Company recorded a provision for loan losses of $5.5 million for the first nine months of 2009 while $5.1 million was recorded for the first nine months of 2008 (see Allowance and Provision for Loan Losses). The Company recorded $4.4 million and $27.5 million of investment impairment losses in the first nine months of 2009 and the first nine months of 2008, respectively (see Non-Interest Income and Expense). As further discussed under the caption Non-Interest Income and Expense, excluding other than temporary investment impairment losses, investment losses, and the gain from the Visa initial public offering, non-interest income would have increased $0.9 million from the nine months ended September 30, 2008, to the nine months ended September 30, 2009. Excluding the loss on the early redemption of the trust preferred securities in the first nine months of 2008, non-interest expense for the nine months ended September 30, 2009 would have increased $1.3 million from the nine months ended September 30, 2008.
The Company s net interest income for the third quarter of 2009 decreased $2.6 million compared to the third quarter of 2008 (see Net Interest Income). The Company recorded a provision for loan losses of $1.68 million for the third quarter of 2009 while $2.35 million was recorded for the third quarter of 2008 (see Allowance and Provision for Loan Losses). As further discussed under the caption Non-Interest Income and Expense, excluding investment impairment losses, non-interest income remained flat at $14.7 million for both the three months ended September 30, 2008, and the three months ended September 30, 2009. Non-interest expense for the three months ended September 30, 2009 decreased $0.4 million from the three months ended September 30, 2008.
During the third and fourth quarters of 2008, the Company sold $450 million of interest rate floors. The gain from sales of these interest rate floors of $16.7 million will be recognized over the remaining lives of the various hedged loans. During the first nine months of 2009, the Company recognized $7.8 million of interest income compared to $5.6 million of interest income recognized in the first nine months of 2008 from the interest rate floors.
The Company s tax equivalent net interest income decreased $2.6 million, or 9.8%, from $26.5 million during the third quarter of 2008 to $23.9 million during the third quarter of 2009, as interest income from loans and investments decreased more quickly than interest expense on deposits and other interest bearing liabilities. Due to a decrease in the Company s yield on loans of 105 basis points from the third quarter of 2008, interest income related to loans declined $4.2 million. In addition, interest income declined $0.9 million from the third quarter of 2008 due to a decline in the yield on investments. Deposit growth also increased interest expense by $1.2 million. Partially offsetting these decreases in net interest income was a decline in interest expense on deposits of $1.9 million due to a decline of 37 basis points on interest bearing deposits. In addition, higher average balances of loans and investments increased interest income by $1.3 million. The Company s reported net interest margin decreased from 4.78% for the quarter ended September 30, 2008 to 4.09% for the quarter ended September 30, 2009.
During the third and fourth quarters of 2008, the Company sold $450 million of interest rate floors. The gain from sales of these interest rate floors of $16.7 million will be recognized over the remaining lives of the various hedged loans – predominantly prime-based commercial and home equity loans. During the third quarter of 2009, the Company recognized $2.2 million of interest income compared to $2.4 million of interest income recognized in the third quarter of 2008 from the interest rate floors.
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