Regulatory Requirements And Capital Ratios

12 Months Ended

Dec. 31, 2023

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Requirements And Capital Ratios

REGULATORY REQUIREMENTS, RESTRICTIONS ON DIVIDENDS AND CAPITAL RATIOS

    The principal source of income and cash for City Holding (the "Parent Company") is dividends from City National. Dividends paid by City National to the Parent Company are subject to certain legal and regulatory limitations. Generally, any dividends in amounts that exceed the earnings retained by City National in the current year plus retained net profits for the preceding two years must be approved by regulatory authorities. Approval is also required if dividends declared would cause City National’s regulatory capital to fall below specified minimum levels.  At December 31, 2023, City National could pay dividends up to $53.3 million without prior regulatory permission.

    During 2023, the Parent Company used cash obtained from the dividends received primarily to: (1) pay common dividends to shareholders and (2) fund repurchases of the Company's common shares. As of December 31, 2023, the Parent Company reported a cash balance of approximately $64.0 million.  Management believes that the Parent Company’s available cash balance, together with cash dividends from City National, is adequate to satisfy its funding and cash needs in 2024.

    The Basel III Capital Rules require City Holding and City National to maintain minimum CET 1, Tier 1 and Total Capital ratios, along with a capital conservation buffer, effectively resulting in minimum capital ratios (which are shown in the table below). The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The Basel III Capital Rules also provide for a "countercyclical capital buffer" that is applicable to only certain covered institutions and does not have any current applicability to City Holding Company or City National Bank.

The Company’s minimum required regulatory capital ratios for both City Holding and City National include the 2.5% capital conservation buffer and are illustrated in the following tables (in thousands):

December 31, 2023	Actual				Minimum Required - Basel III				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
CET 1 Capital
City Holding Company	$	627,579	15.7	%	$	279,768	7.0	%	$	259,875	6.5	%
City National Bank	549,031		13.8	%	278,692		7.0	%	258,785		6.5	%
Tier 1 Capital
City Holding Company	627,579		15.7	%	339,718		8.5	%	319,735		8.0	%
City National Bank	549,031		13.8	%	338,412		8.5	%	318,505		8.0	%
Total Capital
City Holding Company	648,646		16.2	%	419,652		10.5	%	399,669		10.0	%
City National Bank	570,099		14.3	%	418,038		10.5	%	398,131		10.0	%
Tier 1 Leverage Ratio
City Holding Company	627,579		10.2	%	245,468		4.0	%	306,835		5.0	%
City National Bank	549,031		8.9	%	245,587		4.0	%	306,984		5.0	%

December 31, 2022:	Actual				Minimum Required - Basel III				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
CET 1 Capital
City Holding Company	$	598,068	16.2	%	$	257,965	7.0	%	$	239,538	6.5	%
City National Bank	508,586		13.9	%	256,520		7.0	%	238,197		6.5	%
Tier 1 Capital
City Holding Company	598,068		16.2	%	313,243		8.5	%	294,817		8.0	%
City National Bank	508,586		13.9	%	311,488		8.5	%	293,166		8.0	%
Total Capital
City Holding Company	612,654		16.6	%	386,947		10.5	%	368,521		10.0	%
City National Bank	523,172		14.3	%	384,780		10.5	%	366,457		10.0	%
Tier 1 Leverage Ratio
City Holding Company	598,068		10.0	%	238,954		4.0	%	298,692		5.0	%
City National Bank	508,586		8.6	%	237,973		4.0	%	297,466		5.0	%

    As of December 31, 2023, management believes that City Holding Company, and its banking subsidiary, City National, were "well capitalized." City Holding is subject to regulatory capital requirements administered by the Federal Reserve, while City National is subject to regulatory capital requirements administered by the Office of the Comptroller of the Currency ("OCC") and the Federal Deposit Insurance Corporation ("FDIC"). Regulatory agencies can initiate certain mandatory actions if either City Holding or City National fails to meet the minimum capital requirements, as shown above. As of December 31, 2023, management believes that City Holding and City National meet all capital adequacy requirements.