Chain Bridge Bancorp, Inc. and Chain Bridge Bank, N.A. 2017 Earnings Release and Dividend Announcement

MCLEAN, Va., Jan. 26, 2018 (GLOBE NEWSWIRE) -- Chain Bridge Bancorp, Inc. (the “Company”), the parent of Chain Bridge Bank, N.A. (the “Bank”) (collectively, “Chain Bridge”), today reported that it earned $2.593 million, or $127.41 per share, in 2017, versus $2.995 million, or $147.36 per share, in 2016. The Company’s return on equity was 7.04% in 2017 versus 8.32% in 2016.

The reduction in the corporate income tax rates at year-end 2017 required the Company to take a one-time charge of $694 thousand for the re-measurement of its deferred tax asset. Excluding this one-time charge, 2017 net income was $3.287 million, or $161.51 per share, and return on equity was 8.92%.

Book value per share was $1,872.34 at year-end 2017, versus $1,695.27 at year-end 2016. Excluding the unrealized loss on securities, book value per share was $1,942.35 at year-end 2017 versus $1,778.45 at year-end 2016.

Chain Bridge reported zero non-performing assets at December 31, 2017, the sixth consecutive year-end with zero non-performing assets.

Capital Raise

The Company’s assets grew $120.0 million or 24.8% and stood at $603.6 million at year-end 2017. To support this growth, the Company sold 3,000 shares at $2,200 per share, almost entirely to existing shareholders. The sale of additional shares added $6.6 million to the Company’s capitalization. The Company’s Tier 1 risk- based capital ratio was 17.14% at year-end 2017.

Declaration of Dividend

On January 16, 2018 the Board of Directors declared a cash dividend of $15.00 per share, up from $14.75 per share in 2017 and $11.00 per share in 2016. The dividend is payable on February 15, 2018 to shareholders of record as of January 31, 2018. Future dividends will be contingent on the Company retaining sufficient capital to support anticipated business growth, fund strategic initiatives and provide continued support for depositors.

Chain Bridge Bank, N.A. is a national banking association organized under the laws of the United States and is the sole subsidiary of Chain Bridge Bancorp, Inc., a bank holding company registered with the Federal Reserve. The Bank is a member of the FDIC and its deposits are insured up to the legal maximums. The Company’s shares are privately held.

Contact:
John J. Brough
Chief Executive Officer
Phone: 703-748-2005
Address: 1445-A Laughlin Avenue McLean, VA 22101
jbrough@chainbridgebank.com
chainbridgebank.com

CAUTION ABOUT FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of the Bank’s operations and policies and regarding general economic conditions. Because of the uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward- looking statements. The Company’s and Bank’s past results are not necessarily indicative of future performance.

Chain Bridge Bancorp, Inc. and
Chain Bridge Bank, National Association
Consolidated Financial Highlights
Year Ended December 31,
Excluding Charge for Deferred
Years Ended December 31, Tax Asset Re-measurement
2017 2016 Change 2017 Change from 2016
Performance Measures and Yields
Consolidated net income $ 2,592,826 $ 2,994,686 -13.4% $ 3,286,780 9.8%
Return on average assets (ROAA) 0.49% 0.59% -0.11% 0.62% 0.03%
Return on average risk weighted assets 1 0.99% 1.14% -0.15% 1.25% 0.11%
Return on average equity (ROAE) 7.04% 8.32% -1.28% 8.92% 0.60%
Net interest margin (Fully Tax Equivalent) 2.86% 2.69% 0.17% 2.86% 0.17%
Asset Quality (%)
Non-performing assets / assets 0.00% 0.00% 0.00% 0.00% 0.00%
Texas ratio 2 0.00% 0.00% 0.00% 0.00% 0.00%
Loan loss reserves / gross loans 1.40% 1.40% 0.00% 1.40% 0.00%
Net charge offs (recoveries) / average loans 0.01% -0.01% 0.02% 0.01% 0.02%
Balance Sheet Highlights
Total assets $ 603,615,786 $ 483,586,384 24.8% $ 604,309,743 25.0%
Total loans, net of loans held for sale $ 235,276,444 $ 222,194,628 5.9% $ 235,276,444 5.9%
Total deposits $ 550,482,128 $ 443,322,229 24.2% $ 550,482,128 24.2%
Capitalization
Total equity capital $ 43,760,343 $ 34,451,333 27.0% $ 44,454,300 29.0%
Tangible equity $ 43,760,343 $ 34,451,333 27.0% $ 44,454,300 29.0%
Tier 1 capital $ 45,396,555 $ 36,141,679 25.6% $ 45,821,263 26.8%
Total risk-based capital ratio 18.39% 15.06% 3.33% 18.55% 3.49%
Tier 1 risk-based ratio 17.14% 13.87% 3.27% 17.30% 3.43%
Chain Bridge Bancorp, Inc. Share Information
Number of shares outstanding 23,372 20,322 15.0% 23,372 15.0%
Book value per share $ 1,872.34 $ 1,695.27 10.4% $ 1,902.03 12.2%
Book value per share,
Excluding unrealized gain/loss on securities $ 1,942.35 $ 1,778.45 9.2% $ 1,960.52 10.2%
Net income per share $ 127.41 $ 147.36 -13.5% $ 161.51 9.6%
1 Average is calculated using the last five quarter ends.
2 Texas ratio is defined as nonperforming assets plus delinquent loans as a percent of tangible equity and reserves.

Chain Bridge Bancorp, Inc. and
Chain Bridge Bank, National Association
Consolidated Balance Sheets
December 31,
2017 2016
(Unaudited) (Audited)
Assets
Cash and cash equivalents$ 133,072,179 $ 67,173,120
Securities available for sale, at fair market value 223,898,622 182,387,964
Restricted securities, at cost 1,953,600 1,695,900
Loans held for sale 197,972 1,914,731
Loans, net of allowance for loan losses of $3,294,000 in 2017
and $3,110,000 in 2016 231,982,443 219,084,628
Premises and equipment, net of accumulated depreciation
of $3,773,551 in 2017 and $3,389,556 in 2016 8,332,864 7,438,255
Accrued interest receivable 2,246,377 1,657,750
Other assets 1,931,729 2,234,036
Total assets$ 603,615,786 $ 483,586,384
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest bearing$ 368,215,649 $ 304,861,053
Savings, interest-bearing checking and money market accounts 149,073,921 109,704,827
Time, $250,000 and over 18,486,602 15,822,200
Other time 14,705,957 12,934,149
Total deposits$ 550,482,129 $ 443,322,229
Securities sold under agreements to repurchase 5,407,769 1,521,953
Short term borrowings 2,250,000 2,000,000
Accrued interest payable 98,232 94,931
Accrued expenses and other liabilities 1,617,314 2,195,938
Total liabilities$ 559,855,444 $ 449,135,051
Stockholders' Equity
Common stock
$1 par value, authorized 50,000 shares,
23,372 and 20,322 shares issued and outstanding$ 23,372 $ 20,322
Additional paid-in capital 27,786,595 21,097,095
Retained earnings 17,586,588 15,024,262
Accumulated other comprehensive loss (1,636,213) (1,690,346)
Total stockholders' equity$ 43,760,342 $ 34,451,333
Total liabilities and stockholders' equity$ 603,615,786 $ 483,586,384

Chain Bridge Bancorp, Inc. and
Chain Bridge Bank, National Association
Consolidated Statements of Income
For the Years Ended December 31, 2017 and 2016
2017 2016
(Unaudited) (Audited)
Interest and Dividend Income
Interest and fees on loans$ 9,721,579 $ 8,398,548
Interest and dividends on securities 4,663,140 4,361,936
Interest on deposits in banks and federal funds sold 1,027,015 486,296
Total interest and dividend income$ 15,411,734 $ 13,246,780
Interest Expense
Interest on deposits$ 1,173,760 $ 609,670
Interest on short-term borrowings 91,735 70,762
Total interest expense$ 1,265,495 $ 680,432
Net Interest Income$ 14,146,239 $ 12,566,348
Provision for Loan Losses 198,718 530,042
Net interest income after provision for loan losses$ 13,947,521 $ 12,036,306
Noninterest Income
Service charges on deposit accounts$ 228,597 $ 356,286
Gain on sale of mortgage loans 183,602 191,077
Rent income 138,298 194,076
Other income 292,904 287,673
Gain (loss) on sale of securities, net (2,349) 352,259
Total noninterest income$ 841,052 $ 1,381,371
Noninterest Expenses
Salaries and employee benefits$ 6,627,950 $ 5,756,034
Data processing and communication expenses 990,082 921,671
Occupancy and equipment expenses 630,238 627,927
Professional services 495,326 396,530
Virginia bank franchise tax 384,598 307,600
FDIC and regulatory assessments 313,400 399,600
Other operating expenses 889,666 1,078,760
Total noninterest expenses$ 10,331,260 $ 9,488,122
Net income before taxes$ 4,457,313 $ 3,929,555
Income Tax Expense
Current tax expense$ 1,228,935 $ 1,129,237
Deferred tax benefit$ (58,405) $ (194,368)
Income tax expense from deferred tax asset re-measurement 693,957 - -
Total income tax expense$ 1,864,487 $ 934,869
Net income $ 2,592,826 $ 2,994,686
Earnings per share, basic and diluted$ 127.41 $ 147.36


Source:Chain Bridge Bank, N.A.