City Holding Company Increases Quarterly Dividend On Common Shares
December 13 2017 - 3:39PM
Business Wire
City Holding Company, “the Company” (NASDAQ: CHCO), a $4.1
billion bank holding company headquartered in Charleston, today
declared a dividend of 46 cents per common share for shareholders
of record as of January 15, 2018. The dividend is payable on
January 31, 2018. The dividend represents a 4.5% increase from the
44 cents per share cash dividend paid in the fourth quarter of
2017.
“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 $1.84 on an annualized basis
is based on the Company’s current strong capital and liquidity
position, our outstanding financial performance during 2017, 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., Keefe Bruyette & Woods Inc., Sandler
O’Neill & Partners LP, and Stephens Inc. The mean analyst
estimate for 2018 earnings is $3.81 per share. The increase in the
dividend rate brings City’s dividend payout ratio closer to 50% of
earnings estimates and affirms our commitment to return our profits
to our shareholders. Over the last five years, City has returned
approximately 70% of its earnings to shareholders either through
dividends or share repurchases. Earnings have also recently been
used to bolster capital for internal growth, and to complete a cash
acquisition of three branch offices in Lexington, Kentucky.
City Holding Company is the parent company of City National Bank
of West Virginia. City National Bank operates 86 branches across
West Virginia, Virginia, Kentucky, 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. Such information
involves risks and uncertainties that could result in the Company’s
actual results differing materially from those projected in the
forward-looking statements. Important factors that could cause
actual results to differ materially from those discussed in such
forward-looking statements include, but are not limited to, (1) the
Company may incur additional loan loss provision due to negative
credit quality trends in the future that may lead to a
deterioration of asset quality; (2) the Company may incur increased
charge-offs in the future; (3) the Company could have adverse legal
actions of a material nature; (4) the Company may face competitive
loss of customers; (5) the Company may be unable to manage its
expense levels; (6) the Company may have difficulty retaining key
employees; (7) changes in the interest rate environment may have
results on the Company’s operations materially different from those
anticipated by the Company’s market risk management functions; (8)
changes in general economic conditions and increased competition
could adversely affect the Company’s operating results; (9) changes
in other regulations and government policies affecting bank holding
companies and their subsidiaries, including changes in monetary
policies, could negatively impact the Company’s operating results;
(10) the Company may experience difficulties growing loan and
deposit balances; (11) the current economic environment poses
significant challenges for us and could adversely affect our
financial condition and results of operations; (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 resulting in either
actual losses or other than temporary impairments on such
investments; (13) the effects of the Wall Street Reform and
Consumer Protection Act (the “Dodd-Frank Act”) and the regulations
promulgated and to be promulgated thereunder, which may subject the
Company and its subsidiaries to a variety of new and more stringent
legal and regulatory requirements which adversely affect their
respective businesses; (14) the impact of new minimum capital
thresholds established as a part of the implementation of Basel
III; and (15) other risk factors relating to the banking industry
or the Company as detailed from time to time in the Company’s
reports filed with the Securities and Exchange Commission,
including those risk factors included in the disclosures under the
heading “ITEM 1A Risk Factors” of the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2016.
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: http://www.businesswire.com/news/home/20171213006162/en/
City Holding CompanyCharles Hageboeck, President & CEO,
304-769-1102
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