Chain Bridge Bancorp, Inc. Announces Fourth Quarter and Full-Year 2023 Results
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. |
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Quarter Ended |
Twelve Months Ended |
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December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||
2023 |
2023 |
2022 |
2023 |
2022 |
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Key Performance Indicators |
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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.) |
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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 |
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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 |
|
1 Quarterly average is calculated using the last two quarter ends. Year to date average is calculated using the last five quarter ends. |
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2 Available for sale securities are reported at fair value, and held to maturity securities are reported at carrying value. |
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3 Liquidity 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. |
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4 Risk-weighted asset density measures the riskiness of the Bank's assets. It is calculated as risk-weighted assets divided by total assets. |
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5 Texas 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. |
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6 On 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. |
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December 31, |
December 31, |
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(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 |
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| 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 |
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| 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 |
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* Derived from audited financial statements. |
Chain Bridge Bancorp, Inc. |
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Quarter Ended |
Twelve Months Ended |
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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 |
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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 |
|
SOURCE Chain Bridge Bancorp, Inc.
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