Financial Performance - Consolidated net income for the six months ended June 30, 2025, was $10.2 million, an increase from $9.7 million for the same period in 2024[139] - For the six months ended June 30, 2025, net income increased by $469 thousand, or 4.8%, compared to the same period in 2024, driven by a $6.3 million, or 32.4%, increase in net interest income[176] - For the three months ended June 30, 2025, net income decreased by $1.2 million, or 21.0%, compared to the same period in 2024, primarily due to a $1.8 million, or 68.5%, decrease in noninterest income[176] Net Interest Income - Net interest income before provision for credit losses was $25.6 million for the six months ended June 30, 2025, compared to $19.4 million for the same period in 2024[144] - Net interest income for the three months ended June 30, 2025, was $11.794 million, an increase of $1.220 million, or 11.5%, from $10.574 million in 2024[176] - For the three months ended June 30, 2025, net interest income increased by $1.2 million, or 11.5%, compared to the same period in 2024, driven by an increase in the average size and yield of the investment securities portfolio[185] Assets and Deposits - Total assets remained stable at $1.4 billion as of June 30, 2025, consistent with the level reported at December 31, 2024[144] - Total deposits increased to $1.3 billion as of June 30, 2025, up from $1.2 billion as of December 31, 2024[144] - As of June 30, 2025, total deposits increased by $31.98 million, or 2.6%, to $1.2819 billion compared to $1.2499 billion as of December 31, 2024[284] Credit Losses and Provisions - The provision for credit losses for the three months ended June 30, 2025, was $(314) thousand, a significant increase of 220.4% compared to $(98) thousand in 2024[176] - For the six months ended June 30, 2025, the provision for credit losses consisted of a net recapture of $379 thousand, primarily due to changes in the loan portfolio composition[201] - The allowance for credit losses (ACL) was $4.193 million, a decrease from $4.514 million at the end of 2024, resulting in a ratio of allowance to total loans outstanding of 1.46%[277] Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2025, was $828 thousand, a decrease of $1.802 million, or 68.5%, from $2.630 million in 2024[176] - Noninterest expenses increased by $1.154 million, or 19.2%, for the three months ended June 30, 2025, reflecting additional costs associated with operating as a public company[176] - Salaries and employee benefits increased by $342 thousand, or 9.0%, for the three months ended June 30, 2025, due to higher headcount and salary increases[213] Capital and Ratios - The total risk-based capital ratio was 44.64% as of June 30, 2025, exceeding the minimum requirements for being well-capitalized[144] - Stockholders' equity as of June 30, 2025, was $156.9 million, an increase of $12.7 million compared to $144.2 million as of December 31, 2024[303] - The tier 1 leverage ratio improved from 9.57% on December 31, 2024, to 10.59% on June 30, 2025, surpassing the 5% requirement[306] Loan Portfolio - As of June 30, 2025, total loans decreased by $25.5 million or 8.1% compared to December 31, 2024, reflecting strategic reductions in commercial real estate lending and cyclical principal curtailments in commercial loans[246] - The total loan portfolio included $287.8 million in loans, with fixed rate loans totaling $89.5 million and variable rate loans totaling $198.3 million[253] - The company employs a multi-pronged approach to manage credit risk, including underwriting policies and an internal and external loan review process[254] Interest Rate Risk - Interest rate risk analysis showed that a 100 bps increase in rates would lead to a 4.18% increase in net interest income as of June 30, 2025[314] - The immediate interest rate risk scenario indicated a potential decrease of 39.69% in net interest income with a 400 bps rate drop as of June 30, 2025[314] - The bank's ALCO meets quarterly to manage interest rate risk and reports results to the board monthly[310] Securities and Investments - The carrying value of total securities was $758.6 million, an increase of $99.7 million or 15.1% compared to $659.0 million as of December 31, 2024[230] - The weighted average yield of available-for-sale securities was 3.67%, while held-to-maturity securities had a yield of 2.16% as of June 30, 2025[227] - U.S. government treasuries increased by $105.2 million or 32.8% to $426.2 million as of June 30, 2025, driven by investments of excess cash reserves[231]
Chain Bridge Bancorp, Inc.(CBNA) - 2025 Q2 - Quarterly Report