Chain Bridge Bancorp, Inc. Reports First 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 first quarter of 2026.

First Quarter 2026 Financial Highlights (Three Months Ended March 31, 2026):

• Consolidated Net Income: $7.1 million

• Earnings Per Share: $1.08 per basic and diluted common share outstanding

• Return on Average Equity: 16.56% (on an annualized basis)

• Return on Average Assets: 1.59% (on an annualized basis)

• Book Value Per Share: $26.65

Financial Performance

For the quarter ended March 31, 2026, the Company reported net income of $7.1 million, compared to $5.3 million for the quarter ended December 31, 2025 and $5.6 million for the quarter ended March 31, 2025. Earnings per share was $1.08 for the quarter ended March 31, 2026, compared to $0.81 for the quarter ended December 31, 2025 and $0.85 for the quarter ended March 31, 2025.

The Company’s consolidated total deposits were $1.7 billion at March 31, 2026, compared to $1.6 billion at December 31, 2025 and March 31, 2025. IntraFi Cash Service^® (ICS^®) One-Way Sell^® deposits moved off the Company’s balance sheet were $595.0 million at March 31, 2026, compared to $359.9 million at December 31, 2025 and $93.2 million at March 31, 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 March 31, 2026 compared to December 31, 2025 and March 31, 2025.

Net income was $7.1 million for the quarter ended March 31, 2026, compared to $5.3 million for the quarter ended December 31, 2025. The change was primarily due to a $1.4 million increase in net interest income, coupled with a $1.3 million increase in deposit placement services. In addition, credit loss recaptures, which totaled $379 thousand during the first quarter of 2026 compared to $19 thousand during the fourth quarter of 2025, also contributed to the increase in net income. These components more than offset an $841 thousand increase in noninterest expense, driven by increased professional services costs.

Net income for the quarter ended March 31, 2026, was $1.5 million higher compared to the quarter ended March 31, 2025. This increase was primarily attributable to a $1.5 million increase in deposit placement services and a $1.1 million improvement in net interest income, with an offsetting $1.3 million increase in noninterest expense.

Book Value Per Share

As of March 31, 2026, book value per share was $26.65, compared to $25.79 at December 31, 2025 and $23.09 at March 31, 2025.

Net income in the first quarter of 2026 drove a $5.7 million increase in stockholders’ equity, but was partially offset by a $1.4 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 $23.4 million was driven by $21.7 million in earnings retained during the period and a $1.7 million reduction in accumulated other comprehensive loss. The reduction reflected higher fair values for available for sale investment securities, primarily due to lower short- and intermediate-term 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 first quarter of 2026 was $14.9 million, compared to $13.6 million in the fourth quarter of 2025 and $13.8 million in the first quarter of 2025. The net interest margin was 3.41% in the first quarter of 2026, compared to 3.26% in the fourth quarter of 2025 and 3.56% in the first quarter of 2025.

The $1.4 million increase in net interest income compared to the fourth quarter of 2025 was primarily driven by the taxable investment securities portfolio, which was $131.6 million larger on average, reflecting the deployment of deposit growth into short-term, available for sale U.S. Treasury securities. This growth, together with yield improvements, resulted in additional interest income of $1.2 million. The improvement in yields reflected these new investments, as well as reinvestment of cash flows into new securities with higher yields than those they replaced, despite a decline in overall market yields. As a result of lower interest-bearing deposit balances, and mix changes leading to an overall reduction in cost of funds, interest expense declined $723 thousand, also contributing to the increase in net interest income. Partially offsetting these factors, declining short term rates drove a $434 thousand decrease in interest earned on interest-bearing deposits in banks.

Compared to the first quarter of 2025, net interest income increased by $1.1 million primarily driven by growth within the taxable investment securities portfolio, which was $287.4 million higher on average. This growth, together with yield improvements, resulted in additional interest income of $2.9 million. As a result of lower interest-bearing deposit balances and a reduction in cost of funds, interest expense declined $298 thousand, also contributing to the increase in net interest income. Partially offsetting these factors, balance reductions and declining short term rates drove a $1.5 million decrease in interest earned on interest-bearing deposits in banks. In addition, income from the loan portfolio declined $589 thousand as a result of cyclical loan payoffs. Despite the increase in net interest income, the year-over-year net interest margin declined from 3.56% to 3.41%, reflecting the larger volume of average interest-earning assets and a decline in the overall yield on interest-earning assets, partially offset by a reduction in cost of funds from 0.25% to 0.15%.

Noninterest Income

Noninterest income for the first quarter of 2026 was $2.4 million, compared to $1.1 million in the fourth quarter of 2025 and $695 thousand for the first quarter of 2025. First 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 $1.7 million, compared to $372 thousand in the fourth quarter of 2025 and $133 thousand in the first 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 fund rate adjustments.

Noninterest Expenses

Total noninterest expense for the first quarter of 2026 was $8.8 million, compared to $8.0 million in the fourth quarter of 2025 and $7.6 million in the first quarter of 2025. The increase in noninterest expense compared to the fourth quarter of 2025 was primarily attributable to increased professional services fees. Compared to the first quarter of 2025, higher salaries and an increase in the number of employees also contributed to the increase in noninterest expense.

Balance Sheet and Related Highlights

As of March 31, 2026:

• Total assets were $1.9 billion, compared to $1.8 billion as of December 31, 2025, and $1.7 billion as of March 31, 2025.

• Total deposits were $1.7 billion, compared to $1.6 billion as of December 31, 2025, and $1.6 billion as of March 31, 2025.

• Total ICS^® One-Way Sell^® deposits were $595.0 million, compared to $359.9 million as of December 31, 2025, and $93.2 million as of March 31, 2025.

• Interest-bearing reserves held at the Federal Reserve were $603.6 million, compared to $580.9 million as of December 31, 2025 and $620.3 million as of March 31, 2025.

• The loan-to-deposit ratio was 15.76% compared to 17.46% as of December 31, 2025, and 19.26% as of March 31, 2025.

• The ratio of non-performing assets to total assets remained at 0.00%, unchanged from December 31, 2025 and March 31, 2025.

Liquidity

As of March 31, 2026, the Company’s liquidity ratio was 92.73%, compared to 91.86% at December 31, 2025 and 89.14% at March 31, 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 $1.6 billion, $1.5 billion and $1.4 billion, respectively, at March 31, 2026, December 31, 2025 and March 31, 2025.

Capital

As of March 31, 2026, the Company’s tangible common equity to tangible total assets ratio was 9.11%, compared to 9.67% at December 31, 2025 and 8.77% at March 31, 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 decline in this ratio primarily reflects higher total assets in the first quarter of 2026 driven by political organization and other deposit growth, which was partially offset by an increase in stockholders’ equity. The year-over-year increase in this ratio reflects additional equity provided by a year of earnings, partially offset by an increase in total assets.

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 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 March 31, 2025, the Company’s Tier 1 leverage ratio stood at 9.88%, the Tier 1 risk-based capital ratio at 40.24% and the total risk-based capital ratio at 41.43%. The quarter-over-quarter and year-over-year changes in the risk-based capital ratios reflect a decrease in risk-weighted assets and capital growth through retained earnings.

The quarter-over-quarter decrease in the Tier 1 leverage ratio is the result of asset growth caused by pre-election deposit inflows, partially offset by an increase in retained earnings. The year-over-year increase in the leverage ratio reflected an increase in total equity from retained earnings, partially offset by higher average assets.

Trust & Wealth Department

As of March 31, 2026, the Trust & Wealth Department oversaw total assets under administration (“AUA”), a measure encompassing both managed and custodial assets, of $711.7 million, which included $221.7 million in assets under management (“AUM”) and $490.1 million in assets under custody (“AUC”). This compares to $610.7 million in AUA as of December 31, 2025, which included $215.4 million in AUM and $395.3 million in AUC. As of March 31, 2025, AUA stood at $409.4 million, including $137.8 million in AUM and $271.6 million in AUC. The increases in AUA from both the prior quarter and prior year primarily reflect account growth and asset inflows. AUA are not captured on the consolidated balance sheets.

Trust and wealth management income, which has increased commensurately with AUM, was $434 thousand in the first quarter of 2026, compared to $416 thousand in the fourth quarter of 2025 and $270 thousand in the first 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 first quarter of 2026, political organization deposit balances have continued to increase. Political organization deposit inflows contributed to the $166.6 million year-over-year increase in total consolidated deposits and the $501.8 million year-over-year increase in One Way Sell^® deposits as of March 31, 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,” “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, 2025, available at the Securities and Exchange Commission’s website (www.sec.gov).

The following table shows 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 E. Albrecht
Corporate Secretary and Counsel
Chain Bridge Bancorp, Inc.
IR@chainbridgebank.com
(703) 748-2005

Source: Chain Bridge Bancorp, Inc.

Released April 28, 2026