City Holding (NASDAQ:CHCO) Misses Q4 CY2025 Revenue Estimates

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the regional banks industry, including City Holding and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 9.4% on average since the latest earnings results.

City Holding

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.

City Holding reported revenues of $81.29 million, up 7.2% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 4.4% since reporting and currently trades at $125.69.

Is now the time to buy City Holding? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 9.4% since reporting. It currently trades at $71.74.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.3% since the results and currently trades at $69.28.

Read our full analysis of The Bancorp’s results here.

Stellar Bancorp

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Stellar Bancorp reported revenues of $105.7 million, down 2% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ tangible book value per share estimates but EPS in line with analysts’ estimates.

The stock is up 9.2% since reporting and currently trades at $32.17.

Read our full, actionable report on Stellar Bancorp here, it’s free for active Edge members.

Home Bancshares

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Home Bancshares reported revenues of $275.5 million, up 6.3% year on year. This number surpassed analysts’ expectations by 1.6%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 4.1% since reporting and currently trades at $28.59.

Read our full, actionable report on Home Bancshares here, it’s free for active Edge members.

What Happened?

Shares of regional banking company City Holding jumped 2.9% in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The shares closed the day at $122.01, up 2.6% from previous close.

Is now the time to buy City Holding? Access our full analysis report here.

What Is The Market Telling Us

City Holding’s shares are not very volatile and have only had 1 move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock gained 2.8% on the news that the earnings season got off to a strong start as several big banks reported third-quarter results that surpassed Wall Street's expectations. 

The positive results were driven by a rebound in investment banking and strong trading desk performance. JPMorgan Chase reported a significant jump in profit and revenue, boosted by increased trading and dealmaking. Similarly, Wells Fargo saw its shares climb after reporting strong net interest income and raising its guidance. Citigroup also exceeded revenue estimates across all its business lines. While Goldman Sachs also beat expectations, its shares dipped slightly on news of potential job cuts aimed at curbing costs. Overall, the strong reports from these financial giants suggest a healthy pickup in corporate activity and trading.Also, Fed Chair Jerome Powell gave investors a major reason for optimism by suggesting the Fed could soon stop its quantitative tightening (QT) program. For months, this policy acted like a brake on the economy, systematically draining cash from the financial system to cool inflation. Powell's comments signal that the Fed may be ready to ease its pressure, which would leave more liquidity in the market to flow into assets like stocks.

City Holding is up 4% since the beginning of the year, and at $122.01 per share, it is trading close to its 52-week high of $133.96 from November 2024. Investors who bought $1,000 worth of City Holding’s shares 5 years ago would now be looking at an investment worth $1,792.

Looking back on regional banks stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Preferred Bank and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Preferred Bank

Founded in 1991 with a focus on serving the Pacific Rim community in Southern California, Preferred Bank is a commercial bank that provides banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, and high net worth individuals.

Preferred Bank reported revenues of $74.98 million, up 3.7% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

Li Yu, Chairman and CEO, commented, “We are pleased to report a quarterly record for diluted earnings per share of $2.84 for the third quarter of 2025. Net income for the quarter was $35.9 million.

Interestingly, the stock is up 6% since reporting and currently trades at $91.29.

Is now the time to buy Preferred Bank? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.5% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $67.60.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

As expected, the stock is down 18.6% since the results and currently trades at $62.69.

Read our full analysis of The Bancorp’s results here.

German American Bancorp

Founded in 1910 during a wave of community banking expansion in the Midwest, German American Bancorp is a financial holding company that provides banking, wealth management, and insurance services across southern Indiana and Kentucky.

German American Bancorp reported revenues of $94.15 million, up 50.9% year on year. This result topped analysts’ expectations by 3.6%. It was a strong quarter as it also put up an impressive beat of analysts’ tangible book value per share estimates and a solid beat of analysts’ revenue estimates.

The stock is up 1.5% since reporting and currently trades at $39.82.

Read our full, actionable report on German American Bancorp here, it’s free for active Edge members.

City Holding

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.

City Holding reported revenues of $81.26 million, up 7% year on year. This print surpassed analysts’ expectations by 2%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $120.10.

Read our full, actionable report on City Holding here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Regional banking company City Holding announced better-than-expected revenue in Q3 CY2025, with sales up 7% year on year to $81.26 million. Its GAAP profit of $2.41 per share was 11.8% above analysts’ consensus estimates.

Is now the time to buy City Holding? Find out by accessing our full research report, it’s free for active Edge members.

City Holding (CHCO) Q3 CY2025 Highlights:

• Net Interest Income: $61.11 million vs analyst estimates of $59.98 million (9.9% year-on-year growth, 1.9% beat)
• Net Interest Margin: 4% vs analyst estimates of 4% (9 basis point beat)
• Revenue: $81.26 million vs analyst estimates of $79.68 million (7% year-on-year growth, 2% beat)
• Efficiency Ratio: 46% vs analyst estimates of 49.3% (333.2 basis point beat)
• EPS (GAAP): $2.41 vs analyst estimates of $2.16 (11.8% beat)
• Tangible Book Value per Share: $44.19 vs analyst estimates of $42.96 (11.9% year-on-year growth, 2.9% beat)
• Market Capitalization: $1.74 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

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, City Holding grew its revenue at a decent 5.2% compounded annual growth rate. Its growth was slightly above the average banking company and shows its offerings resonate with customers.

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% over the last two years was below its five-year trend.

This quarter, City Holding reported year-on-year revenue growth of 7%, and its $81.26 million of revenue exceeded Wall Street’s estimates by 2%.

Net interest income made up 72.7% of the company’s total revenue during the last five years, meaning lending operations are City Holding’s largest source of revenue.

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

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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.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

City Holding’s TBVPS grew at a mediocre 4.1% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 21.4% annually over the last two years from $29.98 to $44.19 per share.

Over the next 12 months, Consensus estimates call for City Holding’s TBVPS to grow by 6.7% to $47.13, mediocre growth rate.

Key Takeaways from City Holding’s Q3 Results

We enjoyed seeing City Holding beat analysts’ tangible book value per share expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 1.8% to $122.41 immediately after reporting.

Sure, City Holding had a solid quarter, but if we look at the bigger picture, is this stock a buy? 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 for active Edge members.