Regional banking company City Holding (NASDAQ: CHCO) missed Wall Street’s revenue expectations in Q4 CY2025, but sales rose 6.8% year on year to $80.2 million. Its non-GAAP profit of $2.18 per share was 3.6% below analysts’ consensus estimates.
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City Holding (CHCO) Q4 CY2025 Highlights:
- Net Interest Income: $60.56 million vs analyst estimates of $61.35 million (9% year-on-year growth, 1.3% miss)
- Net Interest Margin: 3.9% vs analyst estimates of 4% (6.4 basis point miss)
- Revenue: $80.2 million vs analyst estimates of $81.35 million (6.8% year-on-year growth, 1.4% miss)
- Efficiency Ratio: 48.2% vs analyst estimates of 48% (18.6 basis point miss)
- Adjusted EPS: $2.18 vs analyst expectations of $2.26 (3.6% miss)
- Tangible Book Value per Share: $45.41 vs analyst estimates of $45.19 (17% year-on-year growth, in line)
- Market Capitalization: $1.75 billion
Company Overview
With roots dating back to 1957 and a strategic presence along the I-64 and I-81 corridors, City Holding (NASDAQGS:CHCO) operates as a financial holding company providing banking, trust, and investment services through its subsidiary City National Bank across West Virginia, Kentucky, Virginia, and Ohio.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Regrettably, City Holding’s revenue grew at a tepid 7.3% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. City Holding’s recent performance shows its demand has slowed as its annualized revenue growth of 3.2% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, City Holding’s revenue grew by 6.8% year on year to $80.2 million, missing Wall Street’s estimates.
Net interest income made up 72.6% of the company’s total revenue during the last five years, meaning lending operations are City Holding’s largest source of revenue.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
City Holding’s TBVPS grew at a mediocre 4.2% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 14.4% annually over the last two years from $34.69 to $45.41 per share.
Over the next 12 months, Consensus estimates call for City Holding’s TBVPS to grow by 8.8% to $49.40, paltry growth rate.
Key Takeaways from City Holding’s Q4 Results
We struggled to find many positives in these results. Its EPS missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $124.13 immediately after reporting.
So do we think City Holding is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
