City Holding Company Increases Quarterly Dividend on Common Shares


CHARLESTON, West Virginia – (COMMERCIAL THREAD) – City Holding Company, “the Company” (NASDAQ: CHCO), a $ 6.0 billion Charleston-headquartered banking holding company, declared a dividend of 60 cents per common share on November 16, 2021 for shareholders of record on January 14, 2022. The dividend is payable on January 31, 2022. The dividend represents an increase of 3.45% over the cash dividend of 58 cents per share paid in the third quarter of 2021.

“Our board voted again to increase the quarterly cash dividend from 2 cents to 60 cents,” said Charles (Skip) Hageboeck, President and CEO. “This increase reinforces the Company’s commitment to restore value to its shareholders. The decision to increase the dividend to $ 2.40 on an annualized basis is based on the current strong capital and liquidity position of the Company, our financial performance in 2021 and our confidence in the ability of the Company to maintain this performance. .

City is covered by analysts from Boenning & Scattergood, Inc., DA Davidson & Co., Hovde Group, LLC, Keefe, Bruyette & Woods Inc. and Piper Sandler. The average analyst estimate for 2022 earnings is $ 4.96 per share. With this increase in the dividend rate, City’s dividend payout ratio will approach 52% of earnings estimates and affirms our commitment to return our earnings to our shareholders. Over the past five years, City has returned around 76% of its profits to shareholders, either in the form of dividends, share buybacks or cash acquisitions.

City Holding Company is the parent company of the City National Bank of West Virginia. The City National Bank operates 94 branches in West Virginia, Kentucky, Virginia, and Ohio. The Company’s shares are traded on the NASDAQ Global Select Market under the ticker symbol “CHCO”.

Forward-looking information

This press release contains certain forward-looking statements which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements only express the views of management concerning future results or events and are subject to inherent uncertainty, risks, and changing circumstances, many of which are beyond management’s control. Uncertainty, risks, changes in circumstances and other factors could cause the actual results of the Company to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ from those discussed in these forward-looking statements include, without limitation, those set out in the Company’s annual report on Form 10-K for the year ended December 31. 2020 under “ITEM 1A Risk Factors” and the following: (1) general economic conditions, particularly in the communities and markets in which we operate; (2) the uncertainties over the Company’s business, results of operations and financial condition caused by the COVID-19 pandemic, which will depend on several factors, including the extent and duration of the pandemic, its continued influence on financial markets, the efficiency of the Company’s work, home-based arrangements and staffing levels in operational facilities, the impact of market players on which the Company relies and the actions taken by government and government authorities. other third parties in response to the pandemic; (3) credit risk, including the risk that negative trends in credit quality lead to deterioration in asset quality, the risk that our allowance for credit losses may not be sufficient to absorb the actual losses of our loan portfolio and concentration risk in our loan portfolio; (4) changes in the real estate market, including the value of collateral securing portions of our loan portfolio; (5) changes in the interest rate environment; (6) operational risk, including cybersecurity risk and fraud risk, data processing system failures and network breaches; (7) technological changes and increased competition, including competition from non-bank financial institutions; (8) changes in consumer preferences, spending and borrowing patterns, demand for our products and services, and customer performance and creditworthiness; (9) difficulty in increasing loan and deposit balances; (10) our ability to effectively execute our business plan, including with respect to future acquisitions; (11) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries; (12) the deterioration in the financial condition of the US banking system may affect the valuations of the investments the Company has made in securities of other financial institutions; (13) adverse regulatory enforcement actions and lawsuits; (14) difficulty in attracting and retaining key employees; (15) other economic, competitive, technological, operational, government, regulatory and market factors affecting our operations. The forward-looking statements contained herein reflect management’s expectations as of the date on which such statements are made. This information is provided to help shareholders and potential investors understand the Company’s current and planned financial operations and is included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company makes no commitments update statements to reflect events or circumstances that arise after the date on which such statements are made.


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