Chain Bridge Bancorp Reports Increased Net Income and Asset Growth in Q1 2025

Chain Bridge Bancorp, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with net income rising to $5.6 million, up from $3.9 million in the same period last year. This translates to earnings per share of $0.85, slightly down from $0.86 in the prior year. The company's net interest income before provisions for credit losses surged to $13.8 million, a 57.5% increase from $8.8 million in the first quarter of 2024. The growth in net interest income was primarily driven by a substantial increase in interest and dividend income, which reached $14.7 million, compared to $9.7 million a year earlier.

The company's total assets grew to $1.7 billion as of March 31, 2025, up from $1.4 billion at the end of 2024. Total deposits also saw a notable increase, rising to $1.6 billion from $1.2 billion. This growth was largely attributed to a surge in deposits from political organizations following the November 2024 federal elections, with three accounts each exceeding 5% of total deposits, amounting to $472 million or 30.1% of total deposits. However, the company experienced a significant outflow of approximately $506.5 million across six political organization accounts on April 15, 2025.

Operationally, Chain Bridge Bancorp has maintained a strong liquidity position, with cash and cash equivalents totaling $629.2 million as of March 31, 2025. The company’s liquidity ratio improved to 89.14%, up from 85.13% at the end of 2024. The bank's capital ratios also remained robust, with a total risk-based capital ratio of 41.43% and a tier 1 risk-based capital ratio of 40.24%, both well above the regulatory minimums for well-capitalized institutions.

Looking ahead, Chain Bridge Bancorp anticipates that its financial performance will continue to be influenced by short-term interest rates and the cyclical nature of its deposit base, particularly from political organizations. The company is aware of the potential risks associated with economic conditions and federal spending policies, especially in the Washington, D.C. metropolitan area, which could impact its deposit levels and overall financial stability. Management remains focused on maintaining high liquidity and asset quality while navigating the challenges posed by changing market conditions.