3. City Holding Company
Shares of City Holding Company (CHCO) of Charleston, W.V., closed at $36.14 Tuesday, returning 10% year-to-date, following a 2.5% decline during 2011. Based on a quarterly payout of 35 cents, the shares have a dividend yield of 3.87%.
The shares trade for 2.1 times tangible book value, and for 12 times the consensus 2013 EPS estimate of $2.95. The consensus 2012 EPS estimate is $2.70.
City Holding Company's ROA for the 12-month period ended June 30 was of 1.40% and its ROE was 15.12%.
For the 12-month period ended June 30, the company's dividend payout ratio was 53.11%.The company on Aug. 2 agreed to acquire Community Financial (CFFC) of Staunton, Va., for $16.1 million in stock. Community Financial had $508 million in total assets, with 11 branches. The deal is expected to be completed during the first quarter of 2013 and follows City Holding Company's second-quarter acquisition of Virginia Savings Bancorp. The consensus among analysts is for City Holding Company to report third-quarter earnings of 68 cents, increasing from 50 cents during the second quarter, when the company recorded 18 cents a share in merger expenses after tax. During the third quarter of 2011, the company earned 76 cents a share. KBW analyst Catherine Mealor rates City Holding Company "Outperform," with a $38 price target, saying late last month that "CHCO continues to deliver its strategy of 'high profitability with reasonable growth,'" and that the company "has maintained exceptional asset quality, consistent profitability, and impressive capital management skills through a combination of a strong dividend, share buybacks, and accretive and attractively priced acquisitions." City Holding Company repurchased about 238,000 shares during the first half of 2012, and was authorized to buy back another 455,000 shares as of June 30. CHCO data by YCharts
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