Chain Bridge Bancorp, Inc. Announces Fourth Quarter and Full-Year 2023 Results

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Jan 18, 2024, 18:31 ET

MCLEAN, Va., Jan. 18, 2024 /PRNewswire/ -- Chain Bridge Bancorp, Inc., the parent company of Chain Bridge Bank, N.A., today announced its consolidated financial results for the fourth quarter (Q4) of 2023 and the full year ending December 31, 2023.

Fourth Quarter 2023 Financial Highlights:

Consolidated Net Income: $3,313,744
Earnings Per Share: $123.32
Return on Average Equity: 16.94%
Return on Average Assets: 1.23%
Return on Average Risk-Weighted Assets: 3.16%

In Q4 2023, Chain Bridge Bancorp, Inc. recorded a net income of $3,313,744, compared to $2,842,738 in Q3 2023 and $2,584,659 in Q4 2022. The earnings per share (EPS) for Q4 2023 was $123.32, relative to $105.79 in Q3 2023 and $96.18 in Q4 2022.

Annual 2023 Financial Highlights:

Consolidated Net Income: $8,831,187
Earnings Per Share: $328.64
Return on Average Equity: 11.90%
Return on Average Assets: 0.86%
Return on Average Risk-Weighted Assets: 2.06%

The total earnings reported for 2023 amounted to $8,831,187, compared to $8,281,180 in 2022. The EPS for 2023 was $328.64, compared to $324.26 in the prior year.

Chain Bridge Bancorp, Inc.'s balance sheet as of December 31, 2023, showed total assets of $1.205 billion, compared to $1.151 billion at the end of Q3 2023 and $1.031 billion at the end of Q4 2022. Total deposits as of December 31, 2023, were $1.112 billion, compared to $1.067 billion at the end of Q3 2023 and $953 million at the end of Q4 2022.

Attachments:
- Consolidated Financial Highlights
- Consolidated Balance Sheets
- Consolidated Statements of Income

About Chain Bridge Bancorp, Inc.:
Chain Bridge Bancorp, Inc. (the "Company") is a Delaware corporation and the registered bank holding company for Chain Bridge Bank, N.A. (the "Bank"). The Company operates under the Bank Holding Company Act of 1956 (12 U.S.C. § 1841 et seq.) and is under the supervisory jurisdiction of the Federal Reserve Board. Its common stock is privately held, with 269 shareholders as of December 31, 2023. Chain Bridge Bank, N.A., a national banking association, operates under Charter No. 24755 conferred by the Office of the Comptroller of the Currency (OCC), in accordance with the provisions of the National Bank Act (12 U.S.C. §§ 21-216d). The Bank has distinct authorization from the OCC to conduct fiduciary activities as delineated under 12 U.S.C. § 92a and as further set forth in 12 CFR Part 9. The Bank is under the comprehensive regulatory and supervisory framework of the OCC, as outlined in the National Bank Act (12 U.S.C. §§ 21-216d). Furthermore, the Bank is a member of the Federal Deposit Insurance Corporation (FDIC), holding Certificate Number 58595. This membership places the Bank under the supplementary regulatory oversight of the FDIC, pursuant to 12 U.S.C. § 1811 et seq.

CAUTION ABOUT FORWARD-LOOKING STATEMENTS:
This press release may contain 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, potential options to finance potential future growth, or results of Chain Bridge's operations and policies and regarding general economic conditions. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only Chain Bridge's beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside our control. Such statements may be identified by words such as "believe," "may," "would," "could," "expect," "anticipate," "intend," "estimate" and "target" and similar expressions or the negative of such words. 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; economic conditions; changes in laws, rules, and regulatory requirements, including capital and liquidity requirements affecting Chain Bridge's businesses, and Chain Bridge's ability to address those requirements; actions by government agencies, including those that impact money supply; Chain Bridge's ability to maintain its reputation; Chain Bridge's ability to access adequate sources of funding and liquidity; Chain Bridge's ability to effectively defend itself against cyber-attacks and other attempts by unauthorized parties to access its or its customers' information or to disrupt its systems; Chain Bridge's ability to attract and retain key personnel; adverse judicial or regulatory proceedings; competitive pressures among depository and other financial institutions, including non-bank financial technology providers; 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. Chain Bridge does not assume any duty and does not undertake any obligation to update forward-looking statements. The Company's and the Bank's past results are not necessarily indicative of future performance.

Chain Bridge Bancorp, Inc. Consolidated Financial Highlights (unaudited)

		Quarter Ended		Twelve Months Ended
	December 31,	September 30,	December 31,		December 31,	December 31,
	2023	2023	2022		2023	2022
Key Performance Indicators
Consolidated net income	$ 3,313,744	$ 2,842,738	$ 2,584,659		$ 8,831,187	$ 8,281,180
Return on average assets (ROAA)	1.23 %	1.09 %	0.92 %		0.86 %	0.65 %
Return on average risk-weighted assets ¹	3.16 %	2.66 %	2.33 %		2.06 %	2.02 %
Return on average equity (ROAE)	16.94 %	15.05 %	15.52 %		11.90 %	12.79 %
Yield on average earning assets, fully tax equivalent (non-GAAP)	3.28 %	3.18 %	2.85 %		3.13 %	2.18 %
Cost of funds	0.38 %	0.40 %	0.24 %		0.42 %	0.11 %
Net interest margin, fully tax equivalent (non-GAAP)	2.93 %	2.81 %	2.62 %		2.74 %	2.08 %
Balance Sheet and Other Highlights
Total assets	$1,205,202,475	$1,151,112,602	$1,030,683,857		$1,205,202,475	$1,030,683,857
Cash balances held at the Federal Reserve Bank	309,826,185	246,444,224	91,053,596		309,826,185	91,053,596
U.S. Treasury securities	195,363,904	191,922,570	200,078,020		195,363,904	200,078,020
Total investment grade securities ²	566,676,736	566,290,081	592,649,117		566,676,736	592,649,117
Total loans	304,144,296	310,514,386	320,192,778		304,144,296	320,192,778
Total deposits	1,112,025,669	1,066,768,830	952,953,867		1,112,025,669	952,953,867
Trust Department: Total custody and managed assets	240,781,505	185,827,226	141,823,608		240,781,505	141,823,608
Liquidity & Asset Quality Metrics
Liquidity ratio ³	78.75 %	76.28 %	71.11 %		78.75 %	71.11 %
Loan-to-deposit ratio	27.35 %	29.15 %	33.60 %		27.35 %	33.60 %
Risk-weighted asset density ⁴	34.09 %	36.49 %	43.33 %		34.09 %	43.33 %
Non-performing assets / assets	0.00 %	0.00 %	0.00 %		0.00 %	0.00 %
Texas ratio ⁵	0.00 %	0.00 %	0.00 %		0.00 %	0.00 %
Net charge offs (recoveries) / average loans	0.00 %	0.00 %	0.00 %		0.00 %	0.00 %
Allowance for credit losses on loans / gross loans	1.42 %	1.42 %	1.40 %		1.42 %	1.40 %
Allowance for credit losses on held to maturity securities /
gross held to maturity securities ⁶	0.11 %	0.11 %	N/A		0.11 %	N/A
Regulatory Capital Information (Chain Bridge Bank, N.A.)
Tier 1 capital	$ 99,855,821	$ 96,666,154	$ 91,374,209		$ 99,855,821	$ 91,374,209
Tier 1 risk-based capital ratio	24.30 %	23.02 %	20.46 %		24.30 %	20.46 %
Total regulatory capital	$ 104,523,073	$ 101,414,406	$ 95,856,209		$ 104,523,073	$ 95,856,209
Total regulatory capital ratio	25.44 %	24.15 %	21.47 %		25.44 %	21.47 %
Regulatory Capital Information (Chain Bridge Bancorp, Inc.)
Tier 1 risk-based capital	$ 95,002,054	$ 91,619,298	$ 86,430,482		$ 95,002,054	$ 86,430,482
Tier 1 risk-based capital ratio	23.12 %	21.81 %	19.35 %		23.12 %	19.35 %
Total regulatory capital	$ 99,669,306	$ 96,367,550	$ 90,912,482		$ 99,669,306	$ 90,912,482
Total regulatory capital ratio	24.26 %	22.95 %	20.36 %		24.26 %	20.36 %
Share Information (Chain Bridge Bancorp, Inc.)
Number of shares outstanding	26,872	26,872	26,872		26,872	26,872
Book value per share	$ 3,104.98	$ 2,796.69	$ 2,559.65		$ 3,104.98	$ 2,559.65
Book value per share, excluding unrealized
gain/loss on available for sale securities (non-GAAP)	$ 3,535.35	$ 3,409.47	$ 3,216.38		$ 3,535.35	$ 3,216.38
Earnings per share, basic and diluted	$ 123.32	$ 105.79	$ 96.18		$ 328.64	$ 324.26

¹Quarterly average is calculated using the last two quarter ends. Year to date average is calculated using the last five quarter ends.

²Available for sale securities are reported at fair value, and held to maturity securities are reported at carrying value.

³Liquidity measures the Bank's ability to meet its obligations when they become due. It is calculated as the sum of cash and cash equivalents and unpledged investment grade securities , expressed as a percentage of total liabilities.

⁴Risk-weighted asset density measures the riskiness of the Bank's assets. It is calculated as risk-weighted assets divided by total assets.

⁵Texas ratio is defined as the sum of non-performing assets and delinquent loans, expressed as a percentage of tangible equity and the allowance for credit losses on loans.

⁶On January 1, 2023, the Bank adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which required the measurement of expected credit losses for financial assets within scope, including the held to maturity securities portfolio.

Chain Bridge Bancorp, Inc. Consolidated Balance Sheets

	December 31, 2023	December 31, 2022
	(unaudited)	*
Assets
Cash and due from banks	$ 6,035,091	$ 6,773,145
Interest-bearing deposits in other banks	310,732,416	91,889,968
Total cash and cash equivalents	$ 316,767,507	$ 98,663,113
Securities available for sale, at fair value	258,113,809	279,596,208
Securities held to maturity, at carrying value, net of
allowance for credit losses of $348,242 and $0, respectively	308,057,877	312,567,291
Equity securities, at fair value	505,050	485,618
Restricted securities, at cost	2,613,200	2,500,900
Loans, net of allowance for credit losses of $4,319,000
and $4,482,000, respectively	299,825,296	315,710,778
Premises and equipment, net of accumulated depreciation
of $6,790,603 and $6,300,012, respectively	9,857,881	10,079,737
Accrued interest receivable	4,353,614	4,313,033
Other assets	5,108,241	6,767,179
Total assets	$ 1,205,202,475	$ 1,030,683,857
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest-bearing	$ 766,933,306	$ 666,493,146
Savings, interest-bearing checking and money market	328,350,277	273,888,277
Time, $250,000 and over	9,385,015	5,374,103
Other time	7,357,071	7,198,341
Total deposits	$ 1,112,025,669	$ 952,953,867
Short-term borrowings	5,000,000	5,000,000
Accrued interest payable	60,937	20,087
Accrued expenses and other liabilities	4,678,780	3,926,989
Total liabilities	$ 1,121,765,386	$ 961,900,943
Stockholders' Equity
Preferred stock
No par value, 100,000 shares authorized,
no shares issued and outstanding	$ - -	$ - -
Common stock
$1 par value, 200,000 shares authorized,
26,872 shares issued and outstanding	26,872	26,872
Additional paid-in capital	38,283,095	38,283,095
Retained earnings	56,692,087	48,120,515
Accumulated other comprehensive loss	(11,564,965)	(17,647,568)
Total stockholders' equity	$ 83,437,089	$ 68,782,914
Total liabilities and stockholders' equity	$ 1,205,202,475	$ 1,030,683,857

* Derived from audited financial statements.

Chain Bridge Bancorp, Inc. Consolidated Statements of Income (unaudited)

		Quarter Ended		Twelve Months Ended
	December 31,	September 30,	December 31,	December 31,	December 31,
	2023	2023	2022	2023	2022
Interest and Dividend Income
Interest and fees on loans	$ 3,277,453	$ 3,417,461	$ 3,287,052	$ 13,401,710	$ 11,311,115
Interest and dividends on securities, taxable	2,752,236	2,740,462	2,714,431	11,111,769	9,190,140
Interest on securities, tax-exempt	300,682	303,905	310,238	1,218,660	1,293,961
Interest on interest-bearing deposits in banks	2,376,192	1,681,062	1,571,000	6,056,632	5,589,092
Total interest and dividend income	$ 8,706,563	$ 8,142,890	$ 7,882,721	$ 31,788,771	$ 27,384,308
Interest Expense
Interest on deposits	$ 842,163	$ 860,559	$ 566,135	$ 3,663,910	$ 1,081,831
Interest on short-term borrowings	98,074	96,048	75,612	381,693	201,082
Total interest expense	$ 940,237	$ 956,607	$ 641,747	$ 4,045,603	$ 1,282,913
Net Interest Income	$ 7,766,326	$ 7,186,283	$ 7,240,974	$ 27,743,168	$ 26,101,395
(Recovery of) Provision for Credit Losses
(Recovery of) provision for loan credit losses	($ 81,000)	$ 1,000	$ 298,000	($ 163,000)	$ 822,000
Provision for securities credit losses	- -	6,000	- -	804,276	- -
Total (recovery of) provision for credit losses	($ 81,000)	$ 7,000	$ 298,000	$ 641,276	$ 822,000
Net interest income after (recovery of) provision for credit losses	$ 7,847,326	$ 7,179,283	$ 6,942,974	$ 27,101,892	$ 25,279,395
Noninterest Income
Deposit placement services income	$ 867,979	$ 858,766	$ 546,810	$ 1,974,318	$ 1,542,600
Service charges on accounts	266,572	226,724	288,745	918,030	1,153,618
Trust and wealth management income	158,211	148,942	83,027	564,786	335,103
Gain on sale of mortgage loans	12,021	- -	- -	12,021	17,785
Loss on sale of securities	(76,760)	(30,046)	- -	(388,843)	- -
Other income	111,967	16,184	36,009	200,991	60,641
Total noninterest income	$ 1,339,990	$ 1,220,570	$ 954,591	$ 3,281,303	$ 3,109,747
Noninterest Expenses
Salaries and employee benefits	$ 3,122,035	$ 3,115,645	$ 2,914,808	$ 12,359,052	$ 11,172,906
Data processing and communication expenses	592,969	569,069	523,459	2,275,475	1,964,610
Occupancy and equipment expenses	240,573	232,289	220,803	935,671	932,399
Professional services	285,921	206,980	459,836	909,014	1,367,310
Virginia bank franchise tax	175,000	188,654	185,600	739,476	627,312
FDIC and regulatory assessments	141,154	159,004	75,607	584,500	847,511
Directors fees	81,153	99,520	88,050	367,050	370,850
Marketing and business development costs	68,757	48,132	37,358	239,047	188,603
Insurance expenses	59,648	54,006	33,095	225,285	126,521
Other operating expenses	267,894	207,851	161,774	842,360	627,902
Total noninterest expenses	$ 5,035,104	$ 4,881,150	$ 4,700,390	$ 19,476,930	$ 18,225,924
Net income before taxes	$ 4,152,212	$ 3,518,703	$ 3,197,175	$ 10,906,265	$ 10,163,218
Income Tax Expense	838,468	675,965	612,516	2,075,078	1,882,038
Net income	$ 3,313,744	$ 2,842,738	$ 2,584,659	$ 8,831,187	$ 8,281,180
Earnings per common share, basic and diluted	$ 123.32	$ 105.79	$ 96.18	$ 328.64	$ 324.26