Chain Bridge Bancorp, Inc. Reports Fourth Quarter 2025 and Full Year 2025 Financial Results

Chain Bridge Bancorp, Inc. (NYSE:CBNA) (the "Company"), the holding company for Chain Bridge Bank, N.A. (the "Bank"), today announced financial results for the fourth quarter of 2025 and the twelve months ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights (Three Months Ended December 31, 2025):

• Consolidated Net Income: $5.3 million
• Earnings Per Share: $0.81 per basic and diluted common share outstanding
• Return on Average Equity: 12.74% (on an annualized basis)
• Return on Average Assets: 1.27% (on an annualized basis)
• Book Value Per Share: $25.79

Full Year 2025 Financial Highlights (Twelve Months Ended December 31, 2025):

• Consolidated Net Income: $20.2 million
• Earnings Per Share: $3.08 per basic and diluted common share outstanding
• Return on Average Equity: 12.88% (on an annualized basis)
• Return on Average Assets: 1.32% (on an annualized basis)

Financial Performance

For the quarter ended December 31, 2025, the Company reported net income of $5.3 million, compared to $4.7 million for the quarter ended September 30, 2025 and $3.7 million for the quarter ended December 31, 2024. Earnings per share was $0.81 for the quarter ended December 31, 2025, compared to $0.72 for the quarter ended September 30, 2025 and $0.59 for the quarter ended December 31, 2024.

The Company's consolidated total deposits were $1.6 billion at December 31, 2025, compared to $1.4 billion at September 30, 2025 and $1.2 billion at December 31, 2024. IntraFi Cash Service^® (ICS^®) One-Way Sell^® deposits were $359.9 million at December 31, 2025, compared to $146.4 million at September 30, 2025 and $63.3 million at December 31, 2024. Total deposits and One Way Sell^® deposits increased year-over-year, driven by changes in political organization deposit balances, as defined in the Company's public filings, as well as growth across other deposit categories. Our political depositors typically exhibit heightened activity during the quarters leading up to a federal election, contributing to the increase in balance sheet deposits and One-Way Sell^® deposits as of December 31, 2025 compared to September 30, 2025 and December 31, 2024.

Net income was $5.3 million for the quarter ended December 31, 2025, compared to the $4.7 million for the quarter ended September 30, 2025. The change reflects a $1.3 million increase in net interest income, which was partially offset by a $685 thousand increase in noninterest expense. The change in net interest income was attributable to higher average interest-earning assets partially offset by a decrease in the Federal Reserve's interest rate paid on reserve balances. Increases in professional services costs and salaries and employee benefits drove the change in noninterest expense.

Net income for the quarter ended December 31, 2025, was $1.6 million higher compared to the quarter ended December 31, 2024. This increase was primarily attributable to a $2.2 million rise in net interest income, which was driven by higher average balances of interest-earning assets. The recapture of prior credit loss provisions, which also benefited earnings, was partially offset by a $337 thousand increase in noninterest expenses, mainly reflecting higher employment costs associated with operational growth following the Company's initial public offering ("IPO) in October 2024.

For the year ended December 31, 2025, the Company reported net income of $20.2 million, compared to $20.9 million for the same period in 2024. Return on average equity was 12.88% for 2025, compared to 20.05% for 2024. Earnings per share for the year ended December 31, 2025 was $3.08, compared to $4.17 for 2024.

The change in earnings for 2025 compared to 2024 was primarily attributable to a $5.3 million decline in deposit placement services income, and a $3.2 million increase in noninterest expenses principally due to costs associated with operational growth and the Company's transition to operating as a public company. These components more than offset the benefit of a $7.1 million increase in net interest income driven by a $239.5 million rise in average interest-earning assets, primarily reflecting growth in the investment securities portfolio and related income. Return on average equity declined year-over year, primarily reflecting a higher average equity base in 2025 following the IPO in the fourth quarter of the prior year.

Book Value Per Share

As of December 31, 2025, book value per share ("BVPS") was $25.79, compared to $24.86 at September 30, 2025 and $21.98 at December 31, 2024.

During 2025, stockholders' equity grew $25.0 million to $169.2 million as of December 31, 2025, driven by net earnings of $20.2 million and a $4.7 million reduction in accumulated other comprehensive loss. The reduction in accumulated other comprehensive loss reflected higher fair values for available-for-sale investment securities, primarily due to lower U.S. Treasury interest rates and the pull-to-par effect as certain securities neared maturity.

Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2025 was $13.6 million, compared to $12.3 million in the third quarter of 2025 and $11.4 million in the fourth quarter of 2024. The net interest margin, calculated as annualized net interest income divided by average interest-earning assets, was 3.26% in the fourth quarter of 2025, compared to 3.35% in the third quarter of 2025 and 3.46% in the fourth quarter of 2024.

The $1.3 million change in net interest income from the third quarter of 2025 reflected higher average balances held in interest-bearing deposits at the Federal Reserve and higher average balances and yields on taxable securities. These factors were partially muted by declining short term rates, which drove the average yield of interest-bearing deposits at other banks from 4.43% in the third quarter to 3.97% in the fourth quarter. Although net interest income increased from the prior quarter, the larger volume of average interest-earning assets and reduction of short term interest rates resulted in an overall decline in net interest margin.

Compared to the fourth quarter of 2024, net interest income increased by $2.2 million, primarily driven by growth within the taxable investment securities portfolio, which was $298.7 million higher on average and generated a yield increase of 74 basis points. This increase was partially offset by lower average loan balances and yields, and a year-over-year increase in interest-bearing liabilities and the accompanying funding costs. Although interest-bearing deposits at other banks was $86.5 million larger on average, declining short term interest rates caused the yield on these assets to fall 86 basis points over the comparative period, and the overall interest income from this segment was relatively unchanged.

For the year ended December 31, 2025, the Company reported a higher net interest income of $51.5 million, compared to $44.4 million for the year ended December 31, 2024, but a lower net interest margin of 3.39% for 2025, compared to 3.46% for 2024. Interest and dividends on securities were $21.8 million, compared to $12.3 million in 2024 and income from deposits held at other banks was $19.6 million, compared to $20.8 million during 2024. Interest expense on deposits was $4.3 million, compared to $3.3 million during 2024.

The year-over-year increase in net interest income primarily reflects growth in average interest-earning assets, especially taxable investment securities, which rose in average balance and earned higher yields. Although the average balance of interest-bearing deposits in other banks grew by $59.2 million on average, the yield on these assets declined 96 basis points, and interest income from this segment declined by $1.2 million as a result. Positive contributions from the Bank's interest-bearing assets were partially offset by a $135.8 million increase in average interest-bearing liabilities and associated funding costs. Despite an overall decline in the average cost of interest-bearing deposits, the average balances on interest-bearing deposits increased $141.1 million, and interest expense on deposit accounts increased $1.1 million as a result.

While average earning asset balances increased year-over-year, contributing positively to interest income, lower yields on Federal Reserve deposit balances and higher average interest-bearing liabilities reduced the net interest margin.

Noninterest Income

Noninterest income for the fourth quarter of 2025 was $1.1 million, compared to $847 thousand in the third quarter of 2025 and $1.2 million for the fourth quarter of 2024. Fourth quarter 2025 deposit placement services income, which is driven by the volume of One-Way Sell^® deposits through the ICS^® network and the rates paid by ICS^® for those deposits, was $372 thousand, compared to $174 thousand in the third quarter of 2025 and $582 thousand in the fourth quarter of 2024.

Changes in One-Way Sell^® deposits can occur in response to deposit seasonality, evolving balance sheet dynamics and available capital capacity. In the prior year period, a larger portion of deposits was placed off-balance sheet as One-Way Sell^® deposits. Following the Company's IPO, higher capital levels provided additional balance sheet capacity, allowing a greater proportion of deposits to be retained as reciprocal ICS^® deposits. Reciprocal ICS^® deposits that remain on our balance sheet support our net interest margin; however, unlike off-balance sheet One-Way Sell^® deposits, they do not generate income from deposit placement service fees. Deposit placement services income is also affected by changes in the rate paid by ICS^® for One Way Sell^® deposits, which typically adjusts in a manner parallel to federal fund rate adjustments. Service charges on accounts, which are impacted by political deposit transaction activities, were $280 thousand in the fourth quarter of 2025, compared to $250 thousand in the third quarter of 2025, and $397 thousand in the fourth quarter of 2024.

For the year ended December 31, 2025, noninterest income totaled $3.5 million, and was made up in part by $1.3 million in trust and wealth management income, $1.0 million in service charges on accounts, and $838 thousand in deposit placement services income. For the year ended December 31, 2024, noninterest income totaled $8.6 million and included $907 thousand in trust and wealth management income, $1.4 million in service charges on accounts, and $6.2 million in deposit placement services income.

Although One-Way Sell^® deposit balances at December 31, 2025 were higher than at the prior year end, the decrease in deposit placement services income year-over-year is a result of lower average balances throughout much of 2025 and a decline in the rate paid for those deposits. The fluctuations from 2025 to 2024 reflect the same factors described above regarding the rate paid and the typical decrease in political deposit activity during a non-election year. The decline in noninterest income was partially offset by an increase in trust and wealth income generated due to the growth in the assets under administration.

Noninterest Expenses

Total noninterest expense for the fourth quarter of 2025 was $8.0 million, compared to $7.3 million in the third quarter of 2025 and $7.7 million in the fourth quarter of 2024. Noninterest expense increased during the fourth quarter of 2025 compared to the third quarter 2025, driven by higher professional services expenses, along with increased salaries and employee benefits. Compared to the fourth quarter of 2024, the increase was primarily attributable to employment costs and was partially offset by a decline in professional services as compared to the prior year.

For the year ended December 31, 2025, total noninterest expense was $30.1 million, compared to $26.8 million for the year ended December 31, 2024. A $1.8 million increase in employee costs, was the most significant contributor to the overall change, reflecting higher employment costs associated with the Company's growth, increased operational capacity and expanded operations as a public company. State franchise taxes increased as a result of the Bank's capital growth during the year, and other expenses expanded principally due to the Bank's operational growth.

Balance Sheet & Related Highlights

As of December 31, 2025:

• Total assets were $1.8 billion, compared to $1.5 billion as of September 30, 2025, and $1.4 billion as of December 31, 2024.
• Total deposits were $1.6 billion, compared to $1.4 billion as of September 30, 2025, and $1.2 billion as of December 31, 2024.
• Total ICS^® One-Way Sell^® deposits were $359.9 million compared to $146.4 million as of September 30, 2025, and $63.3 million as of December 31, 2024.
• Interest-bearing reserves held at the Federal Reserve were $580.9 million, compared to $388.2 million as of September 30, 2025 and $406.7 million as of December 31, 2024.
• The loan-to-deposit ratio was 17.46% compared to 20.82% as of September 30, 2025, and 25.09% as of December 31, 2024.
• The ratio of non-performing assets to total assets remained at 0.00%, unchanged from September 30, 2025 and December 31, 2024.

Liquidity

As of December 31, 2025, the Company's liquidity ratio was 91.86%, compared to 89.54% at September 30, 2025 and 85.13% at December 31, 2024. The liquidity ratio is calculated as the sum of cash and cash equivalents plus unpledged securities classified as investment grade, divided by total liabilities. Cash, cash equivalents, and unpledged securities totaled $1.5 billion, $1.2 billion and $1.1 billion, respectively, at December 31, 2025, September 30, 2025 and December 31, 2024.

Capital

As of December 31, 2025, the Company's tangible common equity to tangible total assets ratio was 9.67%, compared to 10.63% at September 30, 2025 and 10.30% at December 31, 2024. The ratio, calculated in accordance with GAAP, represents the ratio of common equity to total assets. The Company did not have any intangible assets or goodwill for the periods presented.

The quarter-over-quarter and year-over-year changes in this ratio reflected higher average assets, which were partially offset by an increase in total equity from retained earnings and a reduction in accumulated other comprehensive loss.

As of December 31, 2025, the Company reported a Tier 1 leverage ratio of 10.28%, a Tier 1 risk-based capital ratio of 46.52%, and a total risk-based capital ratio of 47.66%. As of September 30, 2025, the Company reported a Tier 1 leverage ratio of 11.34%, a Tier 1 risk-based capital ratio of 44.43% and a total risk-based capital ratio of 45.65%. As of December 31, 2024, the Company's Tier 1 leverage ratio stood at 11.48%, the Tier 1 risk-based capital ratio at 38.12% and the total risk-based capital ratio at 39.30%. The year-over-year change in the leverage ratio reflected higher average assets, which were partially offset by an increase in total equity from retained earnings. The year-over-year change in the risk-based capital ratios reflects a decrease in risk-weighted assets and capital growth through retained earnings.

Trust & Wealth Department

As of December 31, 2025, the Trust & Wealth Department oversaw total assets under administration ("AUA"), a measure that includes both managed and custodial assets, of $610.7 million, consisting of $215.4 million in assets under management ("AUM") and $395.3 million in assets under custody ("AUC"). This compares to AUA of $552.4 million as of September 30, 2025, which consisted of $196.1 million in AUM and $356.3 million in AUC. As of December 31, 2024, AUA totaled $330.3 million, with $126.8 million in AUM and $203.5 million in AUC. The increases in AUA from both the prior quarter and prior year primarily reflect account growth, asset inflows, and the impact of market performance. AUA are not captured on the consolidated balance sheets.

Trust and wealth management income, which has increased commensurately with AUA, was $416 thousand in the fourth quarter of 2025, compared to $355 thousand in the third quarter of 2025 and $238 thousand in the fourth quarter of 2024.

Political Deposit Trends

Historically, deposits from political organizations have typically increased in the periods leading up to federal elections, declined in the quarters around federal elections, and tended to rebuild gradually in the quarters following federal elections. Deposit balances during early 2025 were affected by sizable political organization account movements, beginning with first-quarter inflows that were more concentrated and differently timed than in prior election cycles. These inflows were the result of a post-election surge in deposits following the November 2024 federal elections. This was followed by a significant outflow from certain political organization accounts early in the second quarter, which began to rebuild by June 30, 2025, with growth continuing thereafter. In 2025, political organization deposit inflows partially contributed to the $323.3 million year-over-year increase in total consolidated deposits and the $213.5 million increase in One Way Sell^® deposits.

For additional information regarding the risks associated with our political organization deposits and deposit concentrations, see the risk factors described under the headings "Our deposits are concentrated in political organizations" and "Our deposit base is concentrated among a small number of clients" in Part I, Item 1A ("Risk Factors") in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

About Chain Bridge Bancorp, Inc.:

Chain Bridge Bancorp, Inc., a Delaware corporation, is the registered bank holding company for Chain Bridge Bank, National Association. Chain Bridge Bancorp, Inc. is regulated and supervised by the Federal Reserve under the Bank Holding Company Act of 1956, as amended. Chain Bridge Bank, National Association is a national banking association, chartered under the National Bank Act, and is subject to primary regulation, supervision, and examination by the Office of the Comptroller of the Currency. Chain Bridge Bank, National Association is a member of the Federal Deposit Insurance Corporation and provides banking, trust, and wealth management services. For more information, please visit our investor relations website at https://ir.chainbridgebank.com.

Cautionary Note Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements involve risks and uncertainties. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other variations or comparable terminology and expressions. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by law.

Forward-looking statements include, among other things, statements relating to: (i) changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks or similar organizations, including the effects of United States federal government spending and tariffs; (ii) the level of, or changes in the level of, interest rates and inflation, including the effects on our net interest income, noninterest income, and the market value of our investment and loan portfolios; (iii) the level and composition of our deposits, including our ability to attract and retain, and the seasonality of, client deposits, including those in the ICS^® network, as well as the amount and timing of deposit inflows and outflows and the concentration of our deposits; (iv) our future net interest margin, net interest income, net income, and return on equity; (v) our political organization clients' fundraising and disbursement activities; (vi) the level and composition of our loan portfolio, including our ability to maintain the credit quality of our loan portfolio; (vii) current and future business, economic and market conditions in the United States generally or in the Washington, D.C. metropolitan area in particular; (viii) the effects of disruptions or instability in the financial system, including as a result of the failure of a financial institution or other participants in it, or geopolitical instability, including war, terrorist attacks, pandemics and man-made and natural disasters; (ix) the impact of, and changes, in applicable laws, regulations, regulatory expectations and accounting standards and policies; (x) our likelihood of success in, and the impact of, legal, regulatory or other actions, investigations or proceedings related to our business; (xi) adverse publicity or reputational harm to us, our senior officers, directors, employees or clients; (xii) our ability to effectively execute our growth plans or other initiatives; (xiii) changes in demand for our products and services; (xiv) our levels of, and access to, sources of liquidity and capital; (xv) the ability to attract and retain essential personnel or changes in our essential personnel; (xvi) our ability to effectively compete with banks, nonbank financial institutions, and financial technology firms and the effects of competition in the financial services industry on our business; (xvii) the effectiveness of our risk management and internal disclosure controls and procedures; (xviii) any failure or interruption of our information and technology systems, including any components provided by a third party; (xix) our ability to identify and address cybersecurity threats and breaches; (xx) our ability to keep pace with technological changes; (xxi) our ability to receive dividends from the Bank and satisfy our obligations as they become due; (xxii) the incremental costs of operating as a public company; (xxiii) our ability to meet our obligations as a public company, including our obligation under Section 404 of the Sarbanes-Oxley Act; and (xxiv) the effect of our dual-class structure and the concentrated ownership of our Class B common stock, including beneficial ownership of our shares by members of the Fitzgerald Family.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including the risks described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2024, available at the Securities and Exchange Commission's website (www.sec.gov).

The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders' equity, together with the average yields on our interest-earning assets and the average costs of our interest-bearing liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

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Investor Relations:

David Evinger

President & Director

Chain Bridge Bancorp, Inc.

[email protected]

(703) 748-7389