City Holding Company reported fourth-quarter earnings of $2.18 per share, falling short of the consensus estimate of $2.29. Quarterly revenue reached approximately $80.2 million, versus analyst expectations of $81.4 million. While earnings per share rose from $1.94 a year earlier, revenue growth of 3.2% year-over-year was insufficient to meet Street projections, reflecting margin pressure from narrowing loan yields.

For the full year ended December 31, 2025, City Holding Company achieved record net income of $130.5 million and record diluted earnings of $8.93 per share. Return on assets climbed to 1.97%, up from 1.75% in 2024, while return on tangible equity reached 21.2%, marking the highest level in the company’s history. Net interest income for the year totaled $236.4 million, a 7.3% increase from $220.2 million in 2024, driven by higher average loan balances and improved funding costs.

Net interest income increased by $16.1 million year-over-year to $237.2 million on a tax-equivalent basis. Growth in average loans of $220.9 million contributed $12.8 million, while a 12-basis-point reduction in funding costs added $7.5 million. These gains were partially offset by higher average liability balances of $184.3 million, which reduced net interest income by $6.1 million. The full-year net interest margin expanded from 3.86% to 3.94%, though fourth-quarter margin contracted from 4.04% to 3.94% due to an 11-basis-point decline in loan yields.

Total loans grew by $232.2 million, or 5.4%, to $4.51 billion, with commercial real estate up $98.6 million, residential real estate up $86.5 million and commercial and industrial loans up $34.1 million. Period-end deposits rose by $156.8 million, or 3.0%, to support a gross loan-to-deposit ratio of 85.0%. Credit quality remained strong: nonperforming assets declined to 0.32% of loans, and total past-due loans fell to 0.19% of outstanding balances. The allowance for credit losses ended the year at 1.1 times nonperforming assets.