A lot of times you can find funky acquisition charges lowering net income and other bank performance ratios to the point that lower reported earnings drive down a company's share price. This can lead to an extremely undervalued stock but, unfortunately for new investors, that doesn't appear to be the case for City Holding Company (NASDAQ:CHCO) as the market has this growing bank's shares trading at a very full price.
In the past year, CHCO's acquisitions of Virginia Savings Bancorp and Community Financial Corp. helped the company grow its assets by an impressive 23.2%. Loans, the main engine behind the bank's revenues, grew 26.7%.
With the higher loan portfolio, interest revenues were up 25.3% YOY when last reported....
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