City Holding Company Increases Quarterly Dividend On Common Shares
December 16 2020 - 4:38PM
Business Wire
City Holding Company, “the Company” (NASDAQ: CHCO), a $5.5
billion bank holding company headquartered in Charleston, today
declared a dividend of 58 cents per common share for shareholders
of record as of January 15, 2021. The dividend is payable on
January 29, 2021. The dividend represents a 1.75% increase from the
57 cents per share cash dividend paid in the third quarter of
2020.
“I am very pleased with the Board's decision to once again
increase the quarterly cash dividend,” stated Charles (Skip)
Hageboeck, President and CEO. “This increase reaffirms the
Company's commitment of returning value to its shareholders. The
decision to increase the dividend to $2.32 on an annualized basis
is based on the Company's current strong capital and liquidity
position, our financial performance during 2020, and our confidence
in the Company's ability to sustain this performance.”
City is covered by analysts at Boenning & Scattergood, Inc.,
D.A. Davidson & Co., Hovde Group, LLC, Keefe, Bruyette &
Woods Inc., Piper Sandler, and Stephens Inc. The mean analyst
estimate for 2021 earnings is $4.02 per share. With this increase
in the dividend rate, City’s dividend payout ratio will approximate
55% of earnings estimates and affirms our commitment to return our
profits to our shareholders. Over the last five years, City has
returned approximately 79% of its earnings to shareholders either
through dividends, share repurchases or cash acquisitions.
City Holding Company is the parent company of City National Bank
of West Virginia. City National Bank operates 94 branches across
West Virginia, Kentucky, Virginia, and Ohio. The Company’s stock is
traded on the NASDAQ Global Select Market under the quotation
symbol “CHCO”.
Forward-Looking Information
This news release contains certain forward-looking statements
that are included pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements express only management’s beliefs regarding future
results or events and are subject to inherent uncertainty, risks,
and changes in circumstances, many of which are outside of
management’s control. Uncertainty, risks, changes in circumstances
and other factors could cause the Company’s actual results to
differ materially from those projected in the forward-looking
statements. Factors that could cause actual results to differ from
those discussed in such forward-looking statements include, but are
not limited to those set forth in the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2019 under “ITEM
1A Risk Factors” and the following: (1) general economic
conditions, especially in the communities and markets in which we
conduct our business; (2) the uncertainties on the Company’s
business, results of operations and financial condition, caused by
the COVID-19 pandemic, which will depend on several factors,
including the scope and duration of the pandemic, its continued
influence on financial markets, the effectiveness of the Company’s
work from home arrangements and staffing levels in operational
facilities, the impact of market participants on which the Company
relies and actions taken by governmental authorities and other
third parties in response to the pandemic; (3) credit risk,
including risk that negative credit quality trends may lead to a
deterioration of asset quality, risk that our allowance for loan
losses may not be sufficient to absorb actual losses in our loan
portfolio, and risk from concentrations in our loan portfolio; (4)
changes in the real estate market, including the value of
collateral securing portions of our loan portfolio; (5) changes in
the interest rate environment; (6) operational risk, including
cybersecurity risk and risk of fraud, data processing system
failures, and network breaches; (7) changes in technology and
increased competition, including competition from non-bank
financial institutions; (8) changes in consumer preferences,
spending and borrowing habits, demand for our products and
services, and customers’ performance and creditworthiness; (9)
difficulty growing loan and deposit balances; (10) our ability to
effectively execute our business plan, including with respect to
future acquisitions; (11) changes in regulations, laws, taxes,
government policies, monetary policies and accounting policies
affecting bank holding companies and their subsidiaries; (12)
deterioration in the financial condition of the U.S. banking system
may impact the valuations of investments the Company has made in
the securities of other financial institutions; (13) regulatory
enforcement actions and adverse legal actions; (14) difficulty
attracting and retaining key employees; (15) other economic,
competitive, technological, operational, governmental, regulatory,
and market factors affecting our operations. Forward-looking
statements made herein reflect management's expectations as of the
date such statements are made. Such information is provided to
assist stockholders and potential investors in understanding
current and anticipated financial operations of the Company and is
included pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The Company undertakes no
obligation to update any forward-looking statement to reflect
events or circumstances that arise after the date such statements
are made.
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version on businesswire.com: https://www.businesswire.com/news/home/20201216005989/en/
Charles Hageboeck, President & CEO (304) 769-1102
City (NASDAQ:CHCO)
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