What authorization underlies these Q2 repurchases?

The Board of Directors approved the 2026 Program on March 25, 2026, authorizing City Holding to repurchase up to 1,000,000 common shares (approximately 7% of outstanding shares at that time) in open-market transactions. The authorization specifies that repurchases occur at prices accretive to continuing shareholders' earnings per share. As of June 30, 2026, 926,000 shares remained available for repurchase.

Why does City Holding repurchase shares if it pays dividends?

Both dividends and share repurchases are capital-return mechanisms. Dividends provide cash to all shareholders; repurchases retire shares and increase EPS for remaining shareholders. Many well-capitalized regional banks, including City Holding, employ both strategies simultaneously. The company's strong regulatory capital ratios (tangible equity ratio of 9.9%, Tier I ratio of 15.0%) permit this dual capital return while maintaining safety buffers.

How does the $122.46 Q2 average price compare to recent valuations?

The $122.46 Q2 average repurchase price was executed when the stock traded in a range of $116.62 to $134.02 during the quarter, with a period-end price of $132.64. This price was 4% higher than the Q1 average price of $117.79, reflecting the stock's overall appreciation. At the Q2 period-end price of $132.64, the stock was trading above the repurchase average, suggesting execution was opportunistic.

What percentage of outstanding shares did Q2 repurchases represent?

The 59,156 shares repurchased in Q2 represented roughly 0.4% of the approximately 14.052 million shares outstanding as of June 30, 2026. Since the authorization allows repurchase of up to 1,000,000 shares (7% of outstanding), the company is well within its authority and has deployed only 7.4% of the authorized amount through Q2 2026.

Is City Holding under any legal or regulatory restrictions on buybacks?

As a bank holding company, City Holding is subject to Federal Reserve oversight and capital regulations. The filing indicates the company maintains regulatory capital ratios significantly above "well capitalized" thresholds, and the Board's authorization language specifies that repurchases occur at prices accretive to earnings per share. No regulatory restrictions on the 2026 Program are disclosed in this filing.

How do these repurchases affect book value per share?

Repurchases at prices above tangible book value per share (which was $46.40 at June 30, 2026) create a modest dilutive effect on book value in the short term but reduce share count going forward. At the $122.46 repurchase price, City Holding repurchased shares at 2.64 times tangible book value, a premium typical for well-capitalized regional banks. The long-term EPS accretion depends on the company's return on retained earnings.

CHCO 8-K Filed 2026-07-22 Execution disclosure

City Holding repurchased 59K shares at $122.46 in Q2 2026

Bank holding company executes portion of 1M-share authorization approved in March; 926K shares remain under plan.

Shares repurchased59K

Avg price paid$122.46

MechanismRule 10b-18 open-market purcha

What the filing says

City Holding Company (NASDAQ: CHCO), a $6.8 billion bank holding company headquartered in Charleston, West Virginia, repurchased 59,156 common shares at a weighted average price of $122.46 per share during the second quarter of 2026. These purchases were executed under the "2026 Program," a share-repurchase plan authorized by the Board of Directors on March 25, 2026, which permits the company to buy back up to 1,000,000 shares of common stock in open-market transactions at prices that are accretive to earnings per share of continuing shareholders. The repurchases represent approximately 0.4% of the shares outstanding as of June 30, 2026.

As of June 30, 2026, the company could repurchase approximately 926,000 shares under the current plan, representing 92.6% of the original 1 million-share authorization. The execution mechanism is consistent with standard Rule 10b-18 open-market purchases. For context, the company repurchased 262,000 shares in the first quarter of 2026 at an average price of $117.79 per share, indicating an acceleration of buyback activity and higher execution prices in the second quarter.

The repurchases occurred in the context of strong capital levels: as of June 30, 2026, City Holding reported tangible equity of $652 million, a tangible equity ratio of 9.9%, and regulatory capital ratios well above "well capitalized" thresholds. The company reported net income of $33.3 million and diluted earnings of $2.35 per share for the quarter, alongside a return on tangible equity of 20.7%.

During the quarter ended June 30, 2026, the Company repurchased 59,156 common shares at a weighted average price of $122.46 per share as part of a one million share repurchase plan authorized by the Board of Directors in March 2026. — CITY HOLDING CO 8-K filing · View on SEC EDGAR →

What this means

Share repurchases reduce share count, which mechanically increases earnings per share if net income is held constant. City Holding's execution of 59,156 shares in Q2 2026 at $122.46—paired with 262,000 repurchased in Q1 at $117.79—reflects active deployment of shareholder capital. With 926,000 shares remaining under authorization (roughly 7% of outstanding shares), the company has substantial flexibility to continue buybacks. The higher Q2 execution price (versus Q1) reflects the 11% increase in the company's period-end stock price ($119.52 in March to $132.64 in June). Buyback activity is consistent with a well-capitalized regional bank returning capital via dividends (quarterly $0.87/share) and opportunistic repurchases.

Frequently asked questions

What authorization underlies these Q2 repurchases?: The Board of Directors approved the 2026 Program on March 25, 2026, authorizing City Holding to repurchase up to 1,000,000 common shares (approximately 7% of outstanding shares at that time) in open-market transactions. The authorization specifies that repurchases occur at prices accretive to continuing shareholders' earnings per share. As of June 30, 2026, 926,000 shares remained available for repurchase.
Why does City Holding repurchase shares if it pays dividends?: Both dividends and share repurchases are capital-return mechanisms. Dividends provide cash to all shareholders; repurchases retire shares and increase EPS for remaining shareholders. Many well-capitalized regional banks, including City Holding, employ both strategies simultaneously. The company's strong regulatory capital ratios (tangible equity ratio of 9.9%, Tier I ratio of 15.0%) permit this dual capital return while maintaining safety buffers.
How does the $122.46 Q2 average price compare to recent valuations?: The $122.46 Q2 average repurchase price was executed when the stock traded in a range of $116.62 to $134.02 during the quarter, with a period-end price of $132.64. This price was 4% higher than the Q1 average price of $117.79, reflecting the stock's overall appreciation. At the Q2 period-end price of $132.64, the stock was trading above the repurchase average, suggesting execution was opportunistic.
What percentage of outstanding shares did Q2 repurchases represent?: The 59,156 shares repurchased in Q2 represented roughly 0.4% of the approximately 14.052 million shares outstanding as of June 30, 2026. Since the authorization allows repurchase of up to 1,000,000 shares (7% of outstanding), the company is well within its authority and has deployed only 7.4% of the authorized amount through Q2 2026.
Is City Holding under any legal or regulatory restrictions on buybacks?: As a bank holding company, City Holding is subject to Federal Reserve oversight and capital regulations. The filing indicates the company maintains regulatory capital ratios significantly above "well capitalized" thresholds, and the Board's authorization language specifies that repurchases occur at prices accretive to earnings per share. No regulatory restrictions on the 2026 Program are disclosed in this filing.
How do these repurchases affect book value per share?: Repurchases at prices above tangible book value per share (which was $46.40 at June 30, 2026) create a modest dilutive effect on book value in the short term but reduce share count going forward. At the $122.46 repurchase price, City Holding repurchased shares at 2.64 times tangible book value, a premium typical for well-capitalized regional banks. The long-term EPS accretion depends on the company's return on retained earnings.

execution rule-10b-18 regional-bank Q2-2026 share-count-reduction

Source. This editorial summary is based on the SEC filing linked above. BuybackStocks aggregates and editorializes publicly available SEC EDGAR filings. Not investment advice. Past authorization announcements do not guarantee future repurchase activity or share price performance. See our full disclosures policy.