City Holding Posts Record EPS of $2.43 Despite Lower Net Income
Key Facts
City Holding reported record diluted earnings per share of $2.43 in the third quarter of 2026, compared with $2.41 a year earlier, while net income available to common shareholders fell to $34.609 million from $35.188 million, according to results announced by the company. For the nine months ended September 30, diluted earnings per share were $6.98, versus $6.75 in the comparable period of 2025. The results put higher earnings per share alongside lower overall earnings, reflecting different movements in the two measures during the period. The available information did not include a verified figure showing a beat on analyst expectations or revenue estimates, so the results are not described as exceeding expectations.
Net interest income on a taxable-equivalent basis rose to $62.870 million from $61.294 million a year earlier. On a GAAP basis, net interest income was $62.605 million, compared with $61.107 million in the third quarter of 2025. Noninterest income also increased to $21.4 million from $20.5 million, a gain of $0.9 million. These figures show growth in core and noninterest income sources alongside a decline in net income available to shareholders. Noninterest expense rose to $40.9 million from $38.3 million, an increase of $2.6 million.
The company attributed most of the expense increase to a $1.1 million rise in salaries and employee benefits, citing salary adjustments, higher incentive compensation and health insurance costs. The increase illustrates some of the pressure on operating expenses during the quarter, while noninterest income also rose. The results presented here did not provide enough numerical detail to determine the effect of each of those items on net income. As a result, reported growth in interest and other income items came alongside a material increase in costs. Net income available to shareholders remained below its year-earlier level.
Loans totaled $4.55 billion on September 30, 2026, up $48.4 million, or 1.1%, since June 30. The movement included growth of $20.1 million, or 4.4%, in commercial and industrial loans during the quarter. On credit quality, the company recorded a $0.1 million recovery of credit losses, compared with a $0.5 million recovery in the third quarter of 2025 and a $0.4 million provision in the second quarter of 2026. The company attributed the recovery mainly to an upgrade of a commercial real estate loan and a slight decline in historical loss rates for commercial and residential real estate loans. This was partly offset by an adjustment to qualitative factors and the downgrade of a $0.25 million commercial loan.
S&P Global said renewed increases in oil prices and supply chain bottlenecks added to cost pressures, while selling prices posted their fastest increase in more than four years. This provides context for the upcoming Federal Open Market Committee meeting, without indicating the direction of its interest rate decision. The committee is scheduled to meet over two days on October 27 and 28, 2026, with a press conference on October 28, according to the Federal Reserve’s schedule.