City Holding Co Liquidation Value

City Holding Co (CHCO) is a West Virginia-based bank holding company operating through City National Bank. As of March 31, 2026, total assets are $6.76B against total liabilities of $5.97B, yielding GAAP book equity of $794M. Under a liquidation lens, the recovery picture is constrained by the standard bank-asset haircut dynamic and a material intangible load.

Asset side: Cash and cash equivalents of $299M recover at 100% ($299M). Investment securities (AFS fair value $1.44B) carry $109M of gross unrealized losses on amortized cost of $1.55B; at current market prices these already reflect fair value, so liquidation recovery approximates $1.44B subject to orderly-sale discount, which is modest for agency/MBS paper. Gross loans of $4.50B net of ACL of $19.7M yield $4.48B net carrying value; applying a conservative 85-90% recovery on a real-money bank loan portfolio wind-down implies $3.80-4.03B recovered. Goodwill and other intangibles of $157M receive zero recovery under the liquidation lens; this wipes out approximately 20% of GAAP equity immediately. Bank premises and equipment (net book $69M) at a 50-60% haircut recover $34-41M. Bank-owned life insurance ($125M) typically liquidates near CSV, recovering close to par. Other assets ($110M) receive mixed recovery.

Liability side at face value: Deposits ($5.34B, including $1.41B non-interest-bearing demand, $1.28B savings, $1.31B time deposits) are senior claims. FHLB long-term advances ($150M) remain at par. Customer repurchase agreements ($375M) are collateralized and settle at par. Other liabilities ($97M) include lease and operational obligations at face.

Net recovery math is tight: Even applying generous haircuts, the intangibles ($157M zeroed), unrealized AFS losses already embedded ($109M pretax on amortized cost), and a ~10-15% loan portfolio haircut consume most of the $794M GAAP equity buffer. Liquidation value to equity is modestly positive at best, consistent with MFFAIS CLV/LLV of $149M — a severe discount to GAAP book. The $30.9M Q1 2026 buyback at $117.79/share and active dividend of ~$49M annualized represent ongoing capital return at prices well above liquidation recovery.

Vs. prior period (December 31, 2025): Cash increased $107M (55.8%), investment securities declined $62M (4.1% via maturities/calls not reinvested), and loans declined $11M. Total deposits grew $43M. ACL declined marginally from $19.9M to $19.7M despite a $0.85M movie theater charge-off, offset by recoveries. No change in FHLB advance balance ($150M static). AFS unrealized loss position worsened slightly in Q1 2026 per OCI movement of -$4.6M net of tax. Goodwill is unchanged at $149.8M (measurement period closed).