City Holding Company (CHCO) approved a new share repurchase program authorizing the purchase of up to 1,000,000 common shares. The board authorized the program on March 25 2026, and the company will execute buybacks at its discretion within the authorized limits, with the program effective immediately.
The new program replaces a prior plan approved on January 31 2024, under which 822,634 shares had been repurchased through March 25 2026. The replacement allows CHCO to continue returning capital while maintaining a strong capital position.
On the same day, CHCO declared a quarterly cash dividend of $0.87 per common share, payable on April 30 2026. The dividend reflects the company’s ongoing commitment to shareholder returns.
President and CEO Charles R. Hageboeck said, "As of March 25 2026, the Company continues to be very well capitalized and capital continues to grow due to our exceptional earnings. As a result, we view this repurchase plan as part of a continued strategy to build value for our stockholders while maintaining appropriate capital levels."
CHCO’s 2025 financial results underpin the confidence behind the program. The company reported record net income of $130.5 million and diluted earnings of $8.93 per share for the year ended December 31 2025. The tangible equity ratio rose to 9.9% at year‑end, and the company’s price‑to‑earnings ratio of 13.3 places it near a two‑year low, indicating a valuation that management views as attractive.
Analysts have noted the company’s strong return on equity of 17% and a dividend yield that has been maintained for 25 consecutive years. The buyback, combined with the dividend, signals a continued focus on returning excess cash to shareholders rather than pursuing aggressive growth initiatives.
The program’s accretive nature means that share repurchases will be conducted at prices that support earnings per share growth. While the exact impact on EPS is not disclosed, the strategy aligns with the company’s broader objective of enhancing shareholder value through disciplined capital allocation.
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