Chain Bridge Bancorp, Inc. Reports Second Quarter 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 second quarter of 2025 and the six months ended June 30, 2025.

Peter G. Fitzgerald, Chairman of Chain Bridge Bancorp, Inc., commented:

"The second quarter began with deposit outflows from political organization accounts, as described in our first quarter earnings release. Deposits then increased by $179.8 million from April 16 through June 30, ending the quarter at $1.3 billion. The Company reported net income of $4.6 million, or $0.70 per basic and diluted share, for the quarter. On June 30, FTSE Russell added Chain Bridge Bancorp, Inc. to the Russell 3000^® Index, among others, as part of the indices' annual reconstitution."

Second Quarter 2025 Financial Highlights (Three Months Ended June 30, 2025):

• Consolidated Net Income: $4.6 million
• Earnings Per Share: $0.70 per basic and diluted common share outstanding
• Return on Average Equity: 11.93% (on an annualized basis)
• Return on Average Assets: 1.30% (on an annualized basis)
• Book Value Per Share: $23.92

Year-to-Date 2025 Financial Highlights (Six Months Ended June 30, 2025):

• Consolidated Net Income: $10.2 million
• Earnings Per Share: $1.55 per basic and diluted common share outstanding
• Return on Average Equity: 13.61% (on an annualized basis)
• Return on Average Assets: 1.37% (on an annualized basis)

Financial Performance

For the quarter ended June 30, 2025, the Company reported net income of $4.6 million, compared to $5.6 million for the quarter ended March 31, 2025 and $5.8 million for the quarter ended June 30, 2024. Earnings per share ("EPS") was $0.70 for the quarter ended June 30, 2025, compared to $0.85 for the quarter ended March 31, 2025 and $1.27 for the quarter ended June 30, 2024.

The sequential decline in net income was primarily attributable to lower interest income following deposit outflows from political organization accounts early in the second quarter. These outflows occurred after elevated deposit inflows during the first quarter of 2025, the size and timing of which differed from prior post-election periods. See the section titled "Political Deposit Trends" for more information. During the first quarter, excess balances were held in interest-bearing reserves at the Federal Reserve and short-term U.S. Treasury securities. As these balances declined, interest income adjusted accordingly.

Total consolidated deposits were $1.3 billion as of June 30, 2025, compared to $1.6 billion at March 31, 2025. IntraFi Cash Service^® (ICS^®) One-Way Sell^® deposits increased to $121.2 million from $93.2 million in the prior quarter. As discussed further under "Political Deposit Trends," deposit balances declined due to significant deposit outflows across six political organization clients early in the quarter, which were partially offset by increases in deposits during the latter portion of the quarter.

Compared to the second quarter of 2024, net income was $1.2 million lower, due primarily to a reduction in deposit placement services income, driven by a shift of One-Way Sell^® deposits onto the balance sheet, and lower overall deposit levels, reflecting the comparison of a non-election year to elevated deposit activity during the 2024 federal election cycle.

Net income increased to $10.2 million for the six months ended June 30, 2025, from $9.7 million for the same period in 2024, driven by a $6.3 million increase in net interest income. Higher average deposit balances, particularly in the first quarter of 2025, supported growth in the investment securities portfolio, and increased cash held at the Federal Reserve. These increases were partially offset by a $2.8 million decrease in noninterest income, due to changes in One-Way Sell^® deposit activity and increased use of reciprocal ICS^® deposits, as well as a $3.0 million increase in noninterest expenses primarily related to operating as a public company.

Earnings per share for the first half of 2025 were $1.55, compared to $2.13 for the same period in 2024. The year-over-year decline in EPS was due to the increase in shares outstanding following the Company's initial public offering ("IPO") in October 2024, through which it issued 1,992,897 shares of Class A common stock.

Book Value Per Share

As of June 30, 2025, book value per share ("BVPS") was $23.92, compared to $21.98 at December 31, 2024 and $20.57 at June 30, 2024.

During the first six months of 2025, stockholders' equity increased by $12.7 million, driven primarily by earnings. The increase also reflected a $2.5 million reduction in accumulated other comprehensive loss, resulting from an increase in the fair value of the available-for-sale investment securities portfolio, net of tax. This improvement was attributable to fluctuations in market interest rates during the first six months of 2025, as well as the effects of existing securities converging toward their par values.

The year-over-year increase in stockholders' equity of $63.0 million was due to $21.4 million in earnings retained during the period, $36.5 million in net proceeds from the Company's IPO in October 2024 and the related over-allotment exercise in November 2024, and a $5.0 million reduction in accumulated other comprehensive loss attributable to improvements in the fair value of available-for-sale investment securities, net of tax. These additions, which augmented the Company's BVPS, were partially offset by the issuance of 1,992,897 shares of Class A common stock in conjunction with the IPO, and resulted in a net increase to BVPS from $20.57 at June 30, 2024 to $23.92 at June 30, 2025.

Interest Income and Net Interest Margin

Net interest income for the second quarter of 2025 was $11.8 million, compared to $13.8 million in the first quarter of 2025 and $10.6 million in the second quarter of 2024. The net interest margin was 3.39% in the second quarter of 2025, compared to 3.56% in the first quarter of 2025 and 3.43% in the second quarter of 2024.

The decline in net interest income and net interest margin from the preceding quarter was primarily driven by a reduction in average balances held in interest-bearing deposits at other banks, particularly at the Federal Reserve, following outflows from political organization deposit accounts early in the quarter. In the prior quarter, these accounts had contributed meaningfully to interest income, as their temporarily elevated balances were invested in liquid, interest-earning instruments such as Federal Reserve balances and short-term U.S. Treasury securities. As those balances normalized, interest income declined accordingly.

An increase in the average size and yield of the investment securities portfolio, which was partially offset by a decrease in the average balance and yield of interest-bearing deposits held in other banks, caused net interest income to increase from $10.6 million during the three months ended June 30, 2024 to $11.8 million during the same period of 2025. Despite improvements in the yield of the investment securities portfolio, the 100 basis point reduction of the Federal Reserve's interest on reserves rate ultimately contributed to a decline in the net interest margin from 3.43% during the three months ended June 30, 2024 to 3.39% during the same period in 2025.

During the six months ended June 30, 2025 the Company reported increases in both net interest income and net interest margin compared to the same period in 2024. Net interest income for the six months ended June 30, 2025 was $25.6 million, with a net interest margin of 3.48%, compared to $19.4 million and 3.30%, respectively, during the six months ended June 30, 2024. The increase was primarily attributable to the Company's reinvestment of maturing securities into higher-yielding taxable investment securities, and to the deployment of higher first-quarter 2025 deposit balances — largely from political organization clients — into interest bearing deposits at the Federal Reserve and short-term investment securities.

Noninterest Income

Noninterest income for the second quarter of 2025 was $828 thousand, compared to $695 thousand in the first quarter of 2025 and $2.6 million for the second quarter of 2024. For the six months ended June 30, 2025, noninterest income was $1.5 million, compared to $4.3 million during the same period in 2024. The year-over-year changes compared to the three and six months ended June 30, 2024 were primarily due to lower deposit placement services income from One-Way Sell^® deposits placed through the ICS^® network. The changes reflect an increase in the Bank's capital levels following the Company's IPO, which permitted a greater portion of deposits to be retained on the balance sheet as reciprocal deposits, as well as the shifts in the composition and activity of the Bank's political organization deposit base. Changes in One-Way Sell^® balances were consistent with typical seasonal patterns associated with federal election cycles.

Noninterest Expenses

Total noninterest expense for the second quarter of 2025 was $7.2 million, compared to $7.6 million in the first quarter of 2025 and $6.0 million in the second quarter of 2024. For the six months ended June 30, 2025, noninterest expense was $14.7 million, compared to $11.7 million during the same period in 2024. The increases in noninterest expense compared to three and six months ended June 30, 2024 were primarily attributable to higher salaries, as well as increased professional services and insurance expenses, reflecting the Company's expanding operations and the infrastructure required to support its public company operations. While salaries and employee benefits expense decreased $278 thousand between the first and second quarters of 2025, contributing to the overall decline in noninterest expense, this change was attributable to the timing of vacancies and incentive compensation accruals, and does not reflect a reduction in the Company's overall workforce.

Balance Sheet & Related Highlights

As of June 30, 2025:

• Total assets were $1.4 billion, consistent with levels reported as of December 31, 2024 and June 30, 2024.
• Total deposits were $1.3 billion, compared to $1.2 billion as of December 31, 2024, and $1.3 billion as of June 30, 2024.
• Total ICS^® One-Way Sell^® deposits were $121.2 million, compared to $63.3 million as of December 31, 2024, and $499.2 million as of June 30, 2024.
• Interest-bearing reserves held at the Federal Reserve were $364.8 million, compared to $406.7 million as of December 31, 2024 and $471.2 million as of June 30, 2024.
• Total loans held for investment, net of the allowance for credit losses, were $283.6 million, compared to $308.8 million as of December 31, 2024, and $300.4 million as of June 30, 2024.
• The loan-to-deposit ratio was 22.45% compared to 25.09% as of December 31, 2024, and 23.42% as of June 30, 2024.
• The ratio of non-performing assets to total assets remained at 0.00%, unchanged from December 31, 2024 and June 30, 2024.

Liquidity

As of June 30, 2025, the Company's liquidity ratio was 88.21%, compared to 89.14% at March 31, 2025 and 82.64% at June 30, 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 $1.1 billion, $1.4 billion and $1.1 billion, respectively, at June 30, 2025, March 31, 2025 and June 30, 2024.

Capital

As of June 30, 2025, the Company's tangible common equity to tangible total assets ratio was 10.86%, compared to 8.77% at March 31, 2025 and 6.66% at June 30, 2024. The ratio, which is calculated in accordance with GAAP, represents the ratio of common equity to total assets. The Company did not have any goodwill or other intangible assets for the periods presented. The quarter-over-quarter change in this ratio reflects a $281.8 million decline in total assets, as well as the increase in total equity in the second quarter of 2025, arising from retained earnings and a reduction in accumulated other comprehensive loss. In addition to retained earnings growth and a reduction of accumulated other comprehensive loss, the year-over-year increase reflects the net proceeds raised through the IPO and the subsequent partial exercise of the underwriters' over-allotment option.

As of June 30, 2025, the Company reported a Tier 1 leverage ratio of 11.45%, a Tier 1 risk-based capital ratio of 43.48%, and a total risk-based capital ratio of 44.64%. As of March 31, 2025, the Company reported a Tier 1 leverage ratio of 9.88%, a Tier 1 risk-based capital ratio of 40.24% and a total risk-based capital ratio of 41.43%. As of June 30, 2024, the Company's Tier 1 leverage ratio stood at 8.30%, the Tier 1 risk-based capital ratio at 26.27% and the total risk-based capital ratio at 27.42%. The quarter-over-quarter increases reflect the reduction in total assets associated with deposit outflows experienced early in the second quarter, as well as additional equity provided by earnings. In addition to a year's accretion of earnings to capital and a reduction in the unrealized fair value loss attributed to the available for sale bond portfolio, the year-over-year increases reflect the equity raised through the IPO and the subsequent partial exercise of the underwriters' over-allotment option.

Trust & Wealth Department

As of June 30, 2025, the Trust & Wealth Department oversaw total assets under administration ("AUA") of $445.4 million, which included $158.1 million in assets under management ("AUM") and $287.3 million in assets under custody ("AUC"). This compares to $409.4 million in AUA as of March 31, 2025, which included $137.8 million in AUM and $271.6 million in AUC. As of June 30, 2024, AUA stood at $364.0 million, including $98.0 million in AUM and $266.0 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 changes in AUA, was $305 thousand in the second quarter of 2025, compared to $270 thousand in the first quarter of 2025 and $239 thousand in the second quarter of 2024.

Political Deposit Trends

As of June 30, 2025, total consolidated deposits were $1.3 billion, compared to $1.6 billion as of March 31, 2025. During the first quarter of 2025, the Company experienced a material increase in deposits from certain political organization clients, primarily attributable to a post-election surge in deposits following the November 2024 federal elections. At March 31, 2025, three political organization accounts each held more than 5% of total consolidated deposits. In aggregate, those three accounts totaled $472.0 million and represented 30.1% of consolidated total deposits.

Although political organization balances have historically tended to rebuild gradually in the quarters following a federal election, the timing and concentration of deposit inflows during the first quarter of 2025 differed from prior cycles. The Company treated these inflows as potentially temporary and maintained the balances in cash reserves held at the Federal Reserve and short-term U.S. Treasury securities that matured during the quarter.

On April 15, 2025, the Company experienced outflows of approximately $506.5 million across six political organization accounts, including the three that exceeded the 5% threshold at March 31, 2025. Following these outflows, total consolidated deposits were $1.1 billion at the close of that day. The resulting reduction in average balances contributed to the quarter-over-quarter decrease in net interest income.

Despite early-second quarter outflows, deposit levels increased during the remainder of the quarter. Total consolidated deposits rose by $179.8 million between April 15, 2025 and June 30, 2025, ending the quarter at $1.3 billion. As of June 30, 2025, two political organization accounts individually exceeded 5% of total consolidated 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:

Hilary Albrecht

Senior Vice President, Corporate Secretary and Counsel

Chain Bridge Bancorp, Inc.

[email protected]

(703) 748-3427