Chain Bridge Bancorp, Inc. 2022 Earnings Release
MCLEAN, Va., Jan. 26, 2023 /PRNewswire/ -- Chain Bridge Bancorp, Inc. (the "Company"), the parent of Chain Bridge Bank, N.A. (the "Bank") (collectively, "Chain Bridge"), today reported net income of $8,281,180, an increase of $1.23 million or 17.48% from the $7,048,718 earned in 2021.
Earnings per weighted average common share, basic and diluted, increased $22.67 or 7.52% to $324.26 in 2022, from $301.59 in 2021. The Company's return on average equity was 12.79% in 2022 versus 10.18% in 2021.
Book value per share was $2,559.65 at year-end 2022, a decrease of 13.92% from $2,973.63 at year-end 2021. On a non-GAAP basis, excluding the unrealized gain or loss on debt securities, book value per share was $3,216.38 at year-end 2022, an increase of 11.12% over $2,894.46 at year-end 2021.
In 2022, Chain Bridge increased its loan loss reserves by $822,000, compared to a reversal of $530,000 in 2021. Chain Bridge ended the year with an allowance for loan losses of $4.48 million, or 1.40% of gross loans, compared to $3.66 million, or 1.29% of gross loans, at year-end 2021. Chain Bridge reported zero non-performing assets at December 31, 2022, the eleventh consecutive year-end with zero non-performing assets.
In the second quarter of 2022, the Company raised $10.50 million by means of a private offering. Pursuant to the terms of the offering, the Company issued 3,500 shares of common stock, at a price per share of $3,000.00. This issuance raised the number of Company shares outstanding from 23,372 to 26,872.
At its July meeting, the Company's Board voted to recommend to shareholders that the Company reincorporate from Virginia to Delaware by means of a conversion. The Company Board also voted, effective immediately, to increase the size of the Company's Board and to add all Bank directors to the Company's Board.
On September 21, 2022, shareholders voted, at a special meeting called for the purpose, to approve the reincorporation of the Company from Virginia to Delaware by means of a conversion. At the special meeting, shareholders approved the Plan of Conversion as well as the Company's Delaware Certificate of Incorporation and Delaware Bylaws. The Company completed its reincorporation to Delaware, by means of a conversion, effective September 30, 2022.
At its October meeting, the Company Board created a Governance and Nominating Committee, an Audit Committee, a Compensation Committee and a Risk Committee.
In October, the U.S. Court of Appeals for the Fourth Circuit heard oral arguments on Blue Flame Medical, LLC's ("Blue Flame") and JPMorgan Chase Bank, N.A.'s (JPMorgan) consolidated appeals from the District Court's orders of Summary Judgment in favor of Chain Bridge and against Blue Flame and JPMorgan. The Fourth Circuit has yet to announce its decisions on these appeals.
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Chain Bridge Bank, N.A. is a national banking association organized under the laws of the United States and is the sole subsidiary of Chain Bridge Bancorp, Inc., a Delaware corporation and bank holding company registered with the Federal Reserve. The Bank is a member of the FDIC and its deposits are insured up to the legal maximums. The Company's shares are privately held.
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Chain Bridge's operations and policies and regarding general economic conditions. Because of the uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Important factors that could have such a result include: market interest rates and inflation; disruptions in the financial markets; actions by government agencies, including those that impact money supply; changes in customer behavior; and changes in customers', suppliers and other counterparties performance and creditworthiness. Readers are cautioned against placing undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake any obligation to update forward-looking statements. The Company's and Bank's past results are not necessarily indicative of future performance.
Chain Bridge Bancorp, Inc. and | |||
Chain Bridge Bank, National Association | |||
Consolidated Financial Highlights | |||
(unaudited) | |||
Years Ended December 31, | |||
2022 | 2021 | ||
Performance Measures and Yields | |||
Consolidated net income | $ 8,281,180 | $ 7,048,718 | |
Return on average assets (ROAA) | 0.65 % | 0.70 % | |
Return on average risk-weighted assets 1 | 2.02 % | 2.02 % | |
Return on average equity (ROAE) | 12.79 % | 10.18 % | |
Yield on earning assets | 2.18 % | 2.15 % | |
Cost of funds | 0.11 % | 0.03 % | |
Net interest margin (Fully Tax Equivalent) | 2.08 % | 2.12 % | |
Balance Sheet and Other Highlights | |||
Total assets | $ 1,030,683,857 | $ 1,218,153,554 | |
Average cash balances held at the Federal Reserve Bank | $ 394,300,295 | $ 230,920,633 | |
U.S. Treasury securities 2 | $ 200,078,020 | $ 446,200,041 | |
Total investment grade securities 2 | $ 592,649,117 | $ 791,786,809 | |
Total loans | $ 320,192,778 | $ 283,919,621 | |
SBA Paycheck Protection Program (PPP) loans, outstanding balance | $ - | $ 21,319,352 | |
Total deposits | $ 952,953,867 | $ 1,140,872,375 | |
Trust Department: Total custody and managed assets | $ 141,823,608 | $ 355,928,607 | |
Asset Quality (%) | |||
Non-performing assets / assets | 0.00 % | 0.00 % | |
Texas ratio 3 | 0.00 % | 0.00 % | |
Risk-weighted asset density 4 | 43.33 % | 30.81 % | |
Loan loss reserves / gross loans | 1.40 % | 1.29 % | |
Loan loss reserves / gross loans excluding PPP loans (non-GAAP) | 1.40 % | 1.39 % | |
Net charge offs (recoveries) / average loans | 0.00 % | 0.00 % | |
Chain Bridge Bancorp, Inc. Regulatory Capital Information | |||
Tier 1 risk-based capital | $ 86,430,482 | $ 67,649,302 | |
Tier 1 risk-based capital ratio | 19.35 % | 18.03 % | |
Total regulatory capital | $ 90,912,482 | $ 71,309,302 | |
Total regulatory capital ratio | 20.36 % | 19.00 % | |
Chain Bridge Bancorp, Inc. Share Information | |||
Number of shares outstanding | 26,872 | 23,372 | |
Book value per share | $ 2,559.65 | $ 2,973.63 | |
Book value per share, | |||
excluding unrealized gain/loss on securities (non-GAAP) | $ 3,216.38 | $ 2,894.46 | |
Earnings per share, basic and diluted | $ 324.26 | $ 301.59 | |
1 Average is calculated using the last five quarter ends. | |||
2 Available for sale securities are reported at fair value, and held to maturity securities are report at carrying value. | |||
3 Texas ratio is defined as nonperforming assets plus delinquent loans as a percent of tangible equity and reserves. | |||
4 Risk-weighted asset density measures the riskiness of the Bank's assets. It is calculated as risk-weighted assets divided by total assets. | |||
Chain Bridge Bancorp, Inc. and | |||
Chain Bridge Bank, National Association | |||
Consolidated Balance Sheets | |||
December 31, | |||
2022 | 2021 | ||
(unaudited) | * | ||
Assets | |||
Cash and due from banks | $ 6,773,145 | $ 3,028,217 | |
Interest-bearing deposits in other banks | 91,889,968 | 120,848,526 | |
Securities available for sale, at fair value | 279,596,208 | 791,246,041 | |
Securities held to maturity, at carrying value | 312,567,291 | - - | |
Equity securities, at fair value | 485,618 | 540,768 | |
Restricted securities, at cost | 2,500,900 | 2,032,600 | |
Loans, net of allowance for loan losses of $4,482,000 in 2022 | |||
and $3,660,000 in 2021 | 315,710,778 | 280,259,621 | |
Premises and equipment, net of accumulated depreciation | |||
of $6,300,012 in 2022 and $5,799,029 in 2021 | 10,079,737 | 10,492,884 | |
Accrued interest receivable | 4,313,033 | 3,568,409 | |
Other assets | 6,767,179 | 6,136,488 | |
Total assets | $ 1,030,683,857 | $ 1,218,153,554 | |
Liabilities and Stockholders' Equity | |||
Liabilities | |||
Deposits: | |||
Noninterest-bearing | $ 666,493,146 | $ 928,392,740 | |
Savings, interest-bearing checking and money market accounts | 273,888,277 | 199,610,956 | |
Time, $250,000 and over | 5,374,103 | 5,483,404 | |
Other time | 7,198,341 | 7,385,275 | |
Total deposits | $ 952,953,867 | $ 1,140,872,375 | |
Short-term borrowings | 5,000,000 | 5,000,000 | |
Accrued interest payable | 20,087 | 5,979 | |
Accrued expenses and other liabilities | 3,926,989 | 2,775,518 | |
Total liabilities | $ 961,900,943 | $ 1,148,653,872 | |
Stockholders' Equity | |||
Preferred stock | |||
$1 par value, authorized 10,000 shares, | |||
no shares issued or outstanding | $ - - | $ - - | |
Common stock | |||
$1 par value, authorized 50,000 shares, 26,872 | |||
and 23,372 shares issued and outstanding respectively | 26,872 | 23,372 | |
Additional paid-in capital | 38,283,095 | 27,786,595 | |
Retained earnings | 48,120,515 | 39,839,335 | |
Accumulated other comprehensive (loss) income | (17,647,568) | 1,850,380 | |
Total stockholders' equity | $ 68,782,914 | $ 69,499,682 | |
Total liabilities and stockholders' equity | $ 1,030,683,857 | $ 1,218,153,554 | |
* Derived from audited financial statements. | |||
Chain Bridge Bancorp, Inc. and | |||
Chain Bridge Bank, National Association | |||
Consolidated Statements of Income | |||
For the Years Ended December 31, 2022 and 2021 | |||
2022 | 2021 | ||
(unaudited) | * | ||
Interest and Dividend Income | |||
Interest and fees on loans | $ 11,311,115 | $ 12,507,337 | |
Interest and dividends on securities, taxable | 9,190,140 | 6,440,293 | |
Interest on securities, tax-exempt | 1,293,961 | 1,425,986 | |
Interest on interest bearing deposits in banks | 5,589,092 | 315,011 | |
Total interest and dividend income | $ 27,384,308 | $ 20,688,627 | |
Interest Expense | |||
Interest on deposits | $ 1,081,831 | $ 163,195 | |
Interest on short-term borrowings | 201,082 | 137,634 | |
Total interest expense | $ 1,282,913 | $ 300,829 | |
Net Interest Income | $ 26,101,395 | $ 20,387,798 | |
Provision for (Recovery of) Loan Losses | 822,000 | (530,000) | |
Net interest income after provision for (recovery of) loan losses | $ 25,279,395 | $ 20,917,798 | |
Noninterest Income | |||
Deposit placement services income | $ 1,542,600 | $ 20,825 | |
Service charges on accounts | 1,153,618 | 978,860 | |
Trust and wealth management income | 335,103 | 344,952 | |
Gain on sale of mortgage loans | 17,785 | 412,488 | |
Other income | 60,641 | 1,519,972 | |
Total noninterest income | $ 3,109,747 | $ 3,277,097 | |
Noninterest Expenses | |||
Salaries and employee benefits | $ 11,172,906 | $ 9,647,555 | |
Data processing and communication expenses | 1,964,610 | 1,724,643 | |
Professional services | 1,367,310 | 1,308,036 | |
Occupancy and equipment expenses | 932,399 | 952,216 | |
FDIC and regulatory assessments | 847,511 | 423,815 | |
Virginia bank franchise tax | 627,312 | 451,423 | |
Directors fees | 370,850 | 307,900 | |
Other operating expenses | 943,026 | 818,758 | |
Total noninterest expenses | $ 18,225,924 | $ 15,634,346 | |
Net income before taxes | $ 10,163,218 | $ 8,560,549 | |
Income Tax Expense | 1,882,038 | 1,511,831 | |
Net income | $ 8,281,180 | $ 7,048,718 | |
Earnings per common share, basic and diluted | $ 324.26 | $ 301.59 | |
* Derived from audited financial statements. | |||
SOURCE Chain Bridge Bancorp, Inc.
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