City Holding Co Q3 interest income up from prior quarter on higher loan yields

Overview

• U.S. regional bank reported record Q3 net income and diluted EPS, both up from prior quarter

• Net interest income rose 3% from prior quarter, driven by higher loan yields and balances

• Company raised quarterly dividend by 15% to $1.00 per share

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• HIGHER LOAN YIELDS AND BALANCES - Co said increased loan yields and higher average loan balances drove net interest income growth

• CREDIT LOSS RECOVERY - Recovery of credit losses was mainly due to loan upgrades and lower historical loss rates

• NON-INTEREST INCOME - Growth in service charges and wealth management fees contributed to higher non-interest income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for City Holding Co is $145.00, about 2.1% above its October 23 closing price of $142.01

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 26 - HBT Financial Q3 adjusted net income beats on higher loan yields

• Oct 26 - Lakeland Financial Q3 net income rises on commercial loan growth

• Oct 26 - First Farmers Q3 net income rises on strong loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)