Chain Bridge Bancorp, Inc. Reports Second Quarter 2026 Financial Results

MCLEAN, Va.--(BUSINESS WIRE)--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 2026 and the six months ended June 30, 2026.

Second Quarter 2026 Financial Highlights (Three Months Ended June 30, 2026):

• Consolidated Net Income: $9.5 million
• Earnings Per Share: $1.45 per basic and diluted common share outstanding
• Return on Average Equity: 21.20% (on an annualized basis)
• Return on Average Assets: 1.90% (on an annualized basis)
• Book Value Per Share: $27.99

Year-to-Date 2026 Financial Highlights (Six Months Ended June 30, 2026):

• Consolidated Net Income: $16.6 million
• Earnings Per Share: $2.53 per basic and diluted common share outstanding
• Return on Average Equity: 18.94% (on an annualized basis)
• Return on Average Assets: 1.75% (on an annualized basis)

Financial Performance

For the quarter ended June 30, 2026, the Company reported net income of $9.5 million, compared to $7.1 million for the quarter ended March 31, 2026, and $4.6 million for the quarter ended June 30, 2025. Earnings per share was $1.45 for the quarter ended June 30, 2026, compared to $1.08 for the quarter ended March 31, 2026, and $0.70 for the quarter ended June 30, 2025.

The Company’s consolidated total deposits were $2.0 billion at June 30, 2026, compared to $1.7 billion at March 31, 2026 and $1.3 billion at June 30, 2025. IntraFi Cash Service^® (ICS^®) One-Way Sell^® deposits moved off the Company’s balance sheet were $668.0 million at June 30, 2026, compared to $595.0 million at March 31, 2026 and $121.2 million at June 30, 2025. The increases were driven by changes in political organization deposit balances, as defined in the Company’s public filings, as well as growth in other deposit categories, such as 501(c)(4) social welfare organization deposits. 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 June 30, 2026 compared to March 31, 2026 and June 30, 2025.

Net income was $9.5 million for the quarter ended June 30, 2026, compared to $7.1 million for the quarter ended March 31, 2026. The quarter-over-quarter change was primarily due to a $2.1 million increase in net interest income, coupled with a $404 thousand increase in deposit placement services income and an $800 thousand decrease in total noninterest expenses. These components were partially offset by a smaller recapture of credit losses, and a larger income tax expense arising from the overall increase in pretax income.

Net income for the quarter ended June 30, 2026, was $4.9 million higher compared to the quarter ended June 30, 2025. This increase was primarily attributable to a $5.3 million improvement in net interest income and a $1.9 million increase in deposit placement services income, with an offsetting $889 thousand increase in noninterest expense and a $1.3 million increase in income tax expense.

Net income for the six months ended June 30, 2026, was $16.6 million, compared to $10.2 million for the same period in 2025. The increase was driven by a $6.4 million increase in net interest income, along with a $3.4 million increase in deposit placement services income. The overall increase was partially reduced by a $2.2 million increase in noninterest expense and a $1.7 million increase in income tax expense.

Book Value Per Share

As of June 30, 2026, book value per share was $27.99, compared to $25.79 at December 31, 2025, and $23.92 at June 30, 2025.

Net income during the first six months of 2026 drove an increase in stockholders’ equity with a $16.6 million increase in retained earnings that was partially offset by a $2.2 million increase in accumulated other comprehensive loss, reflecting reduced fair values across a higher balance of available for sale investment securities.

The year-over-year increase in stockholders’ equity of $26.7 million was driven by $26.6 million in earnings retained during the period.

Interest Income and Net Interest Margin

Net interest income for the second quarter of 2026 was $17.1 million, compared to $14.9 million in the first quarter of 2026 and $11.8 million in the second quarter of 2025. The net interest margin was 3.45% in the second quarter of 2026, compared to 3.41% in the first quarter of 2026 and 3.39% in the second quarter of 2025.

Two primary factors drove the $2.1 million increase in net interest income compared to the first quarter of 2026. First, deposit-driven cash inflows lifted the average balance of interest-bearing deposits in other banks by $131.5 million, generating $1.3 million of additional interest income. Second, income from the taxable investment securities portfolio grew $815 thousand. The portfolio was $74.8 million larger on average, reflecting the deployment of deposit growth into short-term, available for sale U.S. Treasury securities. The improvement in yield reflected these new investments, as well as reinvestment of maturing instruments into new securities with higher yields than those they replaced.

Driven by similar factors, net interest income increased by $5.3 million compared to the second quarter of 2025. Growth within the taxable investment securities portfolio, which was $308.1 million higher on average, together with yield improvements, resulted in additional interest income of $3.0 million within this segment. Interest-bearing deposits in other banks, which were $306.2 million higher on average, generated $2.2 million of additional interest income, although declining yields partially tempered the increase. The year-over-year net interest margin increased from 3.39% to 3.45%, reflecting the larger volume of average interest-earning assets and the reduction in cost of funds from 0.31% to 0.14%.

For the six months ended June 30, 2026, the Company reported higher net interest income of $32.0 million, compared to $25.6 million for the six months ended June 30, 2025, but a lower net interest margin of 3.43% for 2026, compared to 3.48% for 2025. Driving a $5.7 million increase in interest income, the average taxable investment securities portfolio balance increased $298.9 million, and the rate earned on those investments increased 31 basis points. Although the average balance of interest-bearing deposits in other banks grew by $130.8 million, the yield on these assets declined 77 basis points. The net effect was an increase in interest income from this segment of $674 thousand. These contributions from the Bank’s interest-bearing assets were further aided by a $72.3 million decrease in average interest-bearing liabilities and a 17 basis point decline in the average cost of those liabilities, which together resulted in a $611 thousand decline in interest expense. Partially offsetting these components, interest income from the loan segment declined due to a $27.3 million decrease in average loan balances and a 15 basis point reduction in yield.

Despite an increase in net interest income, net interest margin decreased from 3.48% to 3.43% year-over-year because average interest-earning assets grew at a faster rate than net interest income.

Noninterest Income

Noninterest income for the second quarter of 2026 was $2.9 million, compared to $2.4 million in the first quarter of 2026 and $828 thousand for the second quarter of 2025. The second quarter 2026 deposit placement services income, which is driven by the volume of One-Way Sell^® deposits placed at other banks through the ICS^® network and the rates paid by ICS^® for those deposits, was $2.1 million, compared to $1.7 million in the first quarter of 2026 and $159 thousand in the second quarter of 2025.

Changes in One-Way Sell^® deposits can occur in response to deposit seasonality, evolving balance sheet dynamics and available capital capacity. 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 funds rate adjustments.

For the six months ended June 30, 2026, noninterest income was $5.4 million, compared to $1.5 million for the six months ended June 30, 2025. Changes in One-Way Sell^® deposits drove the year-over-year increase, pushing deposit placement services income from $292 thousand to $3.7 million, and income from trust and wealth management services further contributed to the overall growth.

Noninterest Expenses

Total noninterest expense for the second quarter of 2026 was $8.0 million, compared to $8.8 million in the first quarter of 2026 and $7.2 million in the second quarter of 2025. A reduction in professional services fees primarily drove the decrease in noninterest expense compared to the first quarter of 2026. Relative to the second quarter of 2025, higher salaries from a larger workforce drove the majority of the increase in noninterest expense, while a decline in professional services fees partially offset the rise.

For the six months ended June 30, 2026, total noninterest expense was $16.9 million, compared to $14.7 million for the six-month period ended June 30, 2025. Higher salaries and employment costs, as described above, primarily drove the increase.

Balance Sheet and Related Highlights

As of June 30, 2026:

• Total assets were $2.2 billion, compared to $1.8 billion as of December 31, 2025, and $1.4 billion as of June 30, 2025.
• Total deposits were $2.0 billion, compared to $1.6 billion as of December 31, 2025, and $1.3 billion as of June 30, 2025.
• Total ICS^® One-Way Sell^® deposits were $668.0 million, compared to $359.9 million as of December 31, 2025, and $121.2 million as of June 30, 2025.
• Interest-bearing reserves held at the Federal Reserve were $812.7 million, compared to $580.9 million as of December 31, 2025, and $364.8 million as of June 30, 2025.
• The loan-to-deposit ratio was 13.70%, compared to 17.46% as of December 31, 2025, and 22.45% as of June 30, 2025.
• The ratio of non-performing assets to total assets remained at 0.00%, unchanged from December 31, 2025 and June 30, 2025.

Liquidity

As of June 30, 2026, the Company’s liquidity ratio was 94.03%, compared to 92.73% at March 31, 2026 and 88.21% at June 30, 2025. 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 $1.9 billion, $1.6 billion and $1.1 billion, respectively, at June 30, 2026, March 31, 2026 and June 30, 2025.

Capital

As of June 30, 2026, the Company’s tangible common equity to tangible total assets ratio was 8.38%, compared to 9.11% at March 31, 2026 and 10.86% at June 30, 2025. 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 decline in this ratio primarily reflects deposit-driven asset growth, partially offset by an increase in stockholders’ equity.

As of June 30, 2026, the Company reported a Tier 1 leverage ratio of 9.39%, a Tier 1 risk-based capital ratio of 49.46%, and a total risk-based capital ratio of 50.45%. As of March 31, 2026, the Company reported a Tier 1 leverage ratio of 9.94%, a Tier 1 risk-based capital ratio of 47.63%, and a total risk-based capital ratio of 48.65%. As of June 30, 2025, the Company’s Tier 1 leverage ratio stood at 11.45%, the Tier 1 risk-based capital ratio at 43.48% and the total risk-based capital ratio at 44.64%. The quarter-over-quarter and year-over-year increases in the risk-based capital ratios reflect capital growth through retained earnings, which outpaced the growth in risk-weighted assets.

The quarter-over-quarter and year-over-year decreases in the Tier 1 leverage ratio are the result of asset growth caused by pre-election deposit inflows, partially offset by an increase in retained earnings.

Trust & Wealth Department

As of June 30, 2026, the Trust & Wealth Department oversaw total assets under administration (“AUA”), a measure encompassing both managed and custodial assets, of $772.8 million, which included $257.4 million in assets under management (“AUM”) and $515.4 million in assets under custody (“AUC”). This compares to $711.7 million in AUA as of March 31, 2026, which included $221.7 million in AUM and $490.1 million in AUC. As of June 30, 2025, AUA stood at $445.4 million, including $158.1 million in AUM and $287.3 million in AUC. The increase in AUA quarter-over-quarter reflects a combination of account additions and market appreciation, while account additions were the primary driver of the increase year-over-year. AUA are not captured on the consolidated balance sheets.

Trust and wealth management income, which has increased commensurately with AUM, was $501 thousand in the second quarter of 2026, compared to $434 thousand in the first quarter of 2026 and $305 thousand in the second quarter of 2025.

Political Organization Deposits

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. Although the timing and magnitude of these flows have varied from cycle to cycle, such fluctuations are longstanding characteristics of the Company’s deposit base. For additional information regarding political organization deposit activity during 2025, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Through the second quarter of 2026, political organization deposit balances have continued to increase, contributing to the $719.6 million year-over-year increase in total consolidated deposits and the $546.8 million year-over-year increase in One-Way Sell^® deposits as of June 30, 2026.

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,” “might,” “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 and 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, non-bank financial institutions, and financial technology firms and the effects of competition in the financial services industry on our business; (xvii) the emergence, adoption and evolution of new technologies and payment methods, including stablecoins, digital assets, blockchains and other technologies based on distributed ledgers, and their effects on competition and our business; (xviii) the development, use and regulation of artificial intelligence, including by us, our vendors and our competitors; (xix) the effectiveness of our risk management and internal disclosure controls and procedures; (xx) any failure or interruption of our information and technology systems, including any components provided by a third party; (xxi) our ability to identify and address cybersecurity threats and breaches; (xxii) our ability to keep pace with technological changes; (xxiii) our ability to receive dividends from the Bank and satisfy our obligations as they become due; (xxiv) the incremental costs of operating as a public company; (xxv) our ability to meet our obligations as a public company, including our obligation under Section 404 of the Sarbanes-Oxley Act; and (xxvi) 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, 2025, and in the Company’s subsequent filings with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, available at the Securities and Exchange Commission’s website (www.sec.gov).

Investor Relations:
Hilary E. Albrecht
Corporate Secretary and Counsel
Chain Bridge Bancorp, Inc.
IR@chainbridgebank.com
(703) 748-2005