City Holding reported fourth-quarter earnings of $2.18 per share, missing the consensus estimate of $2.29 and marking an increase from $1.94 a year earlier. Revenue for the period came in at approximately $80.2 million, below the anticipated $81.4 million. The shortfall reflected a modest decline in the yield on loans (down 11 basis points) and investments (down 22 basis points), as well as higher average interest-bearing liabilities, which collectively reduced net interest income by roughly $2.3 million compared with the third quarter.

For the full year ended December 31, 2025, City Holding achieved record net income of $130.5 million and record diluted EPS of $8.93, up from $7.35 in 2024. The company delivered a return on assets of 1.97% and a return on tangible equity of 21.2%, placing it among the most profitable community banks nationwide. Management credited disciplined expense control and strong loan growth for driving these milestones.

Annual net interest income rose 7.3% to $237.2 million, driven by a $220.9 million increase in average loan balances and a 12-basis-point decline in funding costs, which added $7.5 million. Net interest margin expanded to 3.94% from 3.86% the prior year. On a quarterly basis, tax-equivalent net interest income dipped 0.8% to $60.8 million, with the net interest margin slipping from 4.04% to 3.94% as maturities of swap agreements and lower investment yields weighed on income.

Nonperforming assets fell to 0.32% of loans from 0.35% a year earlier, while total past-due loans declined to 0.19% of the portfolio. The company recorded a $1.1 million Q4 provision for credit losses and recognized a $1.4 million recovery for the year. Total loans grew 5.4% to $4.51 billion, with commercial real estate up 5.6%, residential mortgages up 4.7% and home equity loans rising 12.8%. Deposit balances increased 3.0% year-over-year to support this lending growth, with noninterest-bearing demand deposits and time deposits both contributing to the rise.