Financial Performance - The Company raised $36.5 million in net proceeds from its IPO by selling 1,992,897 shares at a public offering price of $22.00 per share[37]. - Total assets increased to $1,401,124 thousand as of December 31, 2024, up from $1,205,202 thousand in 2023, representing a growth of approximately 16.3%[545]. - Total deposits rose to $1,249,935 thousand in 2024, compared to $1,112,025 thousand in 2023, indicating an increase of about 12.4%[545]. - Loans, net of allowance for credit losses, increased to $308,773 thousand in 2024 from $299,825 thousand in 2023, reflecting a growth of approximately 3.0%[545]. - Net income for 2024 was $20,949,000, representing a 137.5% increase from $8,831,000 in 2023[550]. - Earnings per common share for 2024 were $4.17, up from $1.93 in 2023, reflecting a growth of 116.6%[550]. - Total noninterest income increased to $8,580,000 in 2024, a rise of 161.5% from $3,281,000 in 2023[550]. - Total noninterest expenses rose to $26,845,000 in 2024, compared to $19,477,000 in 2023, marking a 37.9% increase[550]. - Comprehensive income for 2024 was $24,269,000, compared to $14,914,000 in 2023, reflecting a 62.5% increase[553]. Capital and Risk Management - As of December 31, 2024, the Company reported Tier 1 leverage, Tier 1 risk-based, and total risk-based capital ratios of 11.48%, 38.12%, and 39.30% respectively[37]. - The Bank must comply with Basel III Capital Rules, requiring a common equity Tier 1 capital ratio of at least 4.50% plus a 2.50% capital conservation buffer, resulting in a minimum ratio of 7.00%[107]. - The Company is treated as a "small bank holding company" under the Federal Reserve's SBHC Policy Statement, exempting it from consolidated risk-based capital and leverage rules at the holding company level[106]. - The company actively monitors risk categories including credit risk, interest rate risk, liquidity risk, and operational risk to ensure financial stability[82]. - The company has established an interest rate risk policy and monitoring system to manage interest rate sensitivity effectively[529]. - The Bank's risk grading and ongoing credit monitoring of the loan portfolio involve categorizing loans based on the borrower's ability to service debt and current economic trends[595]. Loan Portfolio and Credit Quality - As of December 31, 2024, the loan portfolio consisted of 67.2% in residential real estate loans, 17.1% in commercial real estate loans, 8.9% in commercial loans, and 6.8% in consumer loans[65]. - The Bank's lending portfolio primarily consists of real-estate secured loans, with a significant portion being first lien loans on single-family residential properties in the Washington, D.C. area[564]. - The Bank's allowance for credit losses on held to maturity (HTM) securities is based on historical credit loss information, adjusted for current conditions and reasonable forecasts[583]. - The provision for loan credit losses in 2024 was $195,000, compared to a recapture of $163,000 in 2023, indicating a shift in credit quality assessment[550]. - Loans classified as substandard, doubtful, or loss are closely monitored, with specific criteria established for each classification to manage credit risk effectively[599]. Deposits and Funding - 93.3% of total deposits were held in transaction accounts as of December 31, 2024, with a cost of funds of 0.31% for the year[47]. - The Company serves deposit clients across 49 states, the District of Columbia, and Puerto Rico, with approximately 23.62% of total deposits from the District of Columbia and 33.44% from Virginia[64]. - Noninterest-bearing deposits increased to $913,379 thousand in 2024 from $766,933 thousand in 2023, marking a rise of approximately 19.1%[545]. - The total amount of deposits exceeding federally insured limits was $730 thousand, compared to $657 thousand in 2023[573]. Compliance and Regulatory Environment - The Company is subject to several federal laws designed to combat money laundering, including the Bank Secrecy Act and the USA PATRIOT Act[133]. - The Company must comply with the CFPB's rule requiring payment account providers to make certain data available to consumers by April 1, 2030[138]. - The Company is responsible for compliance with OFAC requirements, which could have serious legal and financial consequences if violated[135]. - The OCC requires prior written approval for any national bank merger or asset acquisition, considering the effect on competition and financial resources[118]. Employee and Operational Aspects - The company employs 84 full-time employees as of December 31, 2024, and has not experienced labor disruptions[88]. - The company offers competitive compensation and benefits to attract and retain qualified professionals, emphasizing teamwork and collaboration[89]. - The company has implemented a compliance training program for employees to mitigate compliance risk, which includes monitoring by an outside firm[86]. Technology and Innovation - The Company emphasizes technology-driven solutions to enhance service delivery and efficiency for commercial clients managing high transaction volumes[50]. - The Trust & Wealth Department initiated a pilot of the Black Diamond Wealth Platform in 2023, enhancing client experiences with integrated financial information[79]. - The company launched its own branded business credit card program in Q4 2023, offering both secured and unsecured credit lines to meet the needs of commercial clients[69].
Chain Bridge Bancorp, Inc.(CBNA) - 2024 Q4 - Annual Report