City Holding Company (NASDAQ:CHCO) capped a historic 2025 with record annual net income of $130.5 million, as the West Virginia-based lender defied industry-wide margin pressures through robust loan growth and stellar efficiency.
The Charleston-headquartered bank reported full-year diluted earnings of $8.93 per share, a significant increase from the $7.89 per share reported in 2024.
The results were underpinned by a formidable Return on Assets (ROA) of 1.97% and a Return on Tangible Equity (ROTE) of 21.2%, placing the $6.7 billion bank among the top-performing regional lenders in the United States.
Net interest income for the year climbed to $236.4 million, up from $220.2 million in the prior year, driven by a $220.9 million increase in average loan balances and a disciplined approach to deposit pricing.
CEO Charles Hageboeck credited the "record-shattering" year to the company's focus on "growing the customer base and engaging within communities" rather than pursuing growth for growth's sake.
The bank's efficiency remained a hallmark of its performance, even as it navigated a shifting interest rate environment.
Shareholders were also major beneficiaries of the record performance; in September 2025, the board hiked the quarterly dividend by 10% to $0.87 per share, and the company continued its aggressive share repurchase program, buying back hundreds of thousands of shares throughout the fiscal year.
Despite the record profits, City Holding maintained a conservative credit profile.
The bank ended the year with non-performing assets at just 0.34% of total loans, a sequential improvement from the third quarter.
With a Common Equity Tier 1 (CET1) ratio of 13.4%, City enters 2026 with a capital buffer significantly above "well-capitalized" regulatory requirements, providing ample liquidity to support its core retail and commercial lending strategy in the Appalachian and Mid-Atlantic regions.