Financial Performance - Consolidated net income for the nine months ended September 30, 2025, was $14.9 million, down from $17.2 million for the same period in 2024, with earnings per share decreasing from $3.77 to $2.27[145] - For the three months ended September 30, 2025, net income decreased by $2.8 million, or 37.2%, compared to the same period in 2024, primarily due to a $2.2 million, or 72.5%, decrease in noninterest income[184] - Return on average equity decreased to 12.93% for the nine months ended September 30, 2025, down from 25.00% for the same period in 2024[150] Income and Expenses - Net interest income before provision for credit losses was $37.9 million for the nine months ended September 30, 2025, compared to $33.0 million for the same period in 2024, while net interest income after provision was $38.4 million, up from $33.4 million[150] - Noninterest expense increased by $2.874 million, or 15.0%, for the nine months ended September 30, 2025, compared to the same period in 2024, driven by costs associated with operational growth and functioning as a public company[185] - Noninterest income for the nine months ended September 30, 2025, decreased by $5.0 million, or 67.8%, compared to the same period in 2024, reflecting a reduction in deposit placement services income[185] Assets and Liabilities - Total assets increased to $1.5 billion as of September 30, 2025, from $1.4 billion at December 31, 2024, and total deposits rose to $1.4 billion from $1.2 billion[150] - The total debt securities portfolio balance increased to $831.5 million as of September 30, 2025, from $658.8 million at December 31, 2024[150] - Total loans outstanding as of September 30, 2025, were $284.084 million, compared to $300.032 million at the end of 2024[288] Deposits - As of September 30, 2025, approximately 61.1% of total deposits were uninsured by the FDIC, indicating a high level of account balances exceeding coverage limits[165] - Total consolidated deposits increased by $262.4 million, reaching $1.4 billion as of September 30, 2025, with three political organization accounts exceeding 5% of total deposits[294] - Noninterest-bearing deposits accounted for 69.2% of total deposits, while savings, interest-bearing, and money market accounts increased by $85.4 million, or 26.3%, from December 31, 2024, to September 30, 2025[295] Interest Income and Expense - Net interest income for the three months ended September 30, 2025, was $12.276 million, a decrease of $1.370 million, or 10.0%, compared to $13.646 million in 2024[185] - Interest income from taxable securities increased by 57.8% to $5,637,000 in Q3 2025, up from $3,573,000 in Q3 2024[187] - Interest expense for the three months ended September 30, 2025, was $1.158 million, an increase of $136,000, or 13.3%, compared to $1.022 million in 2024[185] Credit Losses and Risk Management - The provision for credit losses for the three months ended September 30, 2025, was $(94,000), a decrease of $24,000, or 20.3%, compared to $(118,000) in 2024[185] - The company employs a multi-pronged approach to address credit risk, including underwriting policies and an internal and external loan review process[265] - The allowance for credit losses (ACL) was $4.110 million, down from $4.514 million at the end of 2024, reflecting a ratio of 1.45% to total loans outstanding[288] Capital and Equity - Stockholders' equity increased to $163.1 million as of September 30, 2025, up $18.9 million from $144.2 million as of December 31, 2024, with net income contributing $14.9 million to this increase[313] - The total risk-based capital ratio was 42.41% as of September 30, 2025, significantly above the well-capitalized requirement of 10.00%, up from 32.94% as of December 31, 2024[316] - Book value per share rose to $24.86 as of September 30, 2025, compared to $21.98 as of December 31, 2024, primarily driven by earnings and improved market value of AFS securities[314] Interest Rate Risk - The one-year cumulative gap in rate-sensitive assets and liabilities was $640.8 million as of September 30, 2025, indicating that assets will reprice before liabilities[319] - Interest rate risk analysis showed that a 100 bps increase in rates could lead to a 4.14% increase in net interest income as of September 30, 2025[324] - The Bank's ALCO meets quarterly to manage interest rate risk and ensure compliance with policies approved by the board of directors[320]
Chain Bridge Bancorp, Inc.(CBNA) - 2025 Q3 - Quarterly Report